April 13, 2022 - Douglas Myser

Steps to stop tax return errors. The IRS announced in bulletin IR-2022-62 that taxpayers should be aware of common mistakes that can delay issuing tax refunds. This filing season, the IRS is seeing signs of a number of common errors, including some taxpayers claiming incorrect amounts of the Recovery Rebate Credit and Child Tax Credit. To avoid errors on these common credits, there are some key steps people should consider. Taxpayers should refer to Letter 6419 for advance Child Tax Credit payments and Letter 6475 for third Economic Impact Payment amounts they received--or their Online Account--to prepare a correct tax return. Claiming incorrect tax credit amounts can not only delay IRS processing, but can also lead to adjusted refund amounts. Steps to stop tax return errors.

To avoid other errors, you can file electronically. Taxpayers can use their computer, smartphone or tablet to file their taxes electronically, whether through IRS Free File or other e-file service providers, to help reduce mistakes. Tax software guides people through each section of their return using a question and answer format. Enter information carefully. This includes any information needed to calculate credits and deductions. Using tax software should help prevent math errors, but taxpayers should always review their tax return for accuracy.

Make sure you use the correct filing status. We have had clients who had the IRS change tax returns that were 6 years old for having an incorrect status at the time of filing. Tax software, including IRS free file, also helps prevent mistake when selecting a tax return filing status. If taxpayers are unsure about their filing status, they should contact one of our Tax Professionals for help, so they don't end up with a large back tax issue, and face a IRS Wage Garnishment. Many in that situation contact a Tax Resolution firm for options in the IRS Fresh Start Program, and options not in that program.