5 Ways You’re Committing Tax Fraud Accidentally

Photo by Constantin Stanciu from shutterstock.com

3. If you claim the wrong deductions

A tale as old as time, filling for the wrong deductions. A lot of people do this every year, deducting expenses like crazy, however, some are wrong.

For example, if you go on a business trip and you decide to take your family along you can’t deduct the trip as a business expense. Of course, some small mistakes such as mixing up your groceries with your client’s are considered a simple error, and it’s not that big of a deal.

4. Not reporting your income

From time to time this can happen. You forget or by accident, you don’t report all of your tips or any bonuses you’re getting. But if that becomes a habit, with any bigger sums, the IRS will notice it and will call you out on it.

How can you skip the authorities coming to your door? Employees that are getting tipped can keep a record of all of their tips and fill in a Publication 531 through which they can report their tipped income.

5. Tax preparer fraud is a thing and you can fall victim to it

Make sure that if you are getting a tax preparer the whole thing is legit and you are not getting scammed. Apparently, they ask for some deductions or credit in order for their fees to get bigger.

The easiest way to avoid this happening to you is by checking their IRS Preparer Tax Identification Number and their professional credentials.

PREV12 3

Leave a Comment

Your email address will not be published. Required fields are marked *

related posts
from our network