3. Not Reporting Parts of Your Income
Doing freelancer work or investing in stocks is always a good idea in order to boost your monthly earnings. However, you must always report those money.
If you receive some extra sums besides your monthly income while doing freelancing for another firm or client and you don’t report that sum then you can expect the IRS to be at your front door.
They will know about your undisclosed amount because the company you did the work for sent them the report. You can complete the Form 1099 and spare yourself from the trouble.
A Form 1099 is specifically made for freelancing, interests and stock dividends.