11. Not Reporting 1099 Income, Distributions from College Savings Accounts and More
Today’s world is a hectic one, that’s for sure, so staying on top of all the reams of paperwork falling out your drawers can sometimes be a fools’ errand. Even trying to remember every little detail of all of the income sources you’re required to report can be a task in itself.
Some of the documents and income often overlooked by taxpayers include statements from old brokerage accounts, or perhaps money pulled from college savings account in order to pay tuition.
Always remember that the IRS is certainly privy to all of this information, even if you are not. If you fail to include any of these items on your tax return, be warned, the IRS will most certainly notice this, resulting in the likely audit.