Tag: tax return

Posted on

Software to Avoid a Tax Audit

Tax filing errors wave a huge red flag at the IRS. If you’re looking for a magic tax software program that prevents an audit, you’re out of luck. On the other hand I can recommend a tax software company that has a built in Audit Alert system. This tax software will help you avoid an audit.

First we’re going to talk about how to avoid a tax audit. When you file your income tax return, you must be very careful to avoid common mistakes. If you do make mistakes, you will most likely get a notified by the IRS.

Here are some of the common mistakes;

1. Social Security Number Errors

2. Earned Income Credit Errors

3. Mathematical Errors

4. Don’t forget your signature

5. Using the wrong tax form

There are many more tax filing mistakes you could potentially make, but why take the chance? If you seriously want to reduce your risk of an audit, you should use TurboTax Online. They have an Audit Risk Meter that will help you to steer clear of an audit.

Tax Software to Avoid Tax Audit

According to the IRS, mathematical errors are way up on top of the list for triggering an audit. Tax preparation software will accurately calculate your math for you. If you choose to use TurboTax, they guarantee the math accuracy, and if you get hit with an IRS or state penalty or interest because of a TurboTax calculation error, then they will pay you the penalty and interest.

Double Check My Tax Return Please

Have you ever written a paper and looked at it way too long? Spotting an error is almost impossible if you are the author and have looked at the document for a long period of time. That’s why we have editors and even they miss typos. Online tax preparation software will double check your tax return to ensure everything is accurate and complete.

No Red Flags Waving Here

Some tax software companies have an audit alert system for example; TurboTax Online has an Audit Risk Meter that is very easy to read. It’s actually a graphic that starts out green on one end and ends up red on the other end. That’s right; you want to stay away from the red zone. You will know where you stand every step of the way.

Avoid Tax Audit with Tax Software

Here’s some more good news. If you receive notice from the IRS that you will be audited, TurboTax Online has a new Audit Support Center. They provide documentation you can download that gives step-by-step guidance that tells you everything you need to know if the IRS contacts you. Now how’s that for reassurance? This is like a huge safety net underneath you. Use the Online Tax Software Today!

Posted on

Amend a State Tax Return

Mistakes happen because we’re human and this isn’t forgotten in the world of taxes. You can file an amended state tax return within three years of the date you filed the original return or within two years of the date on which you paid the tax due on the return, whichever comes later.

Reasons why you can or should amend a tax return:

  • Your federal income wasn’t treated correctly
  • You forgot to file for a specific deduction or credit
  • You need to correct a straightforward mistake
  • Add or remove a dependant
  • Or maybe you received more tax documents in the mail after you filed

    • It’s typically advised that you should wait to amend your tax return until you’ve actually received your return or paid taxes that you owed.

    You need to print off a copy of the year’s return you wish to amend so that you can have it handy as you go to amend it. You can use form 1040X to amend forms 1040, 1040A, 1040EZ, 1040NR, or 1040NR-EZ.

    Even though you cannot e-file your amended state return, you can go through the necessary actions with an online tax service like TurboTax Online. At some point you’ll be asked why you need to file an amended return which is usually one of a few common things.

    They’ll give you all of the information you need to get started on amending your tax return with their usual host of step by step tutorials. Then when you’re done you’ll print off the forms you’ve corrected and the proper address and mailing instructions will be given to you.

    To amend your return, visit TurboTax Online today.

    Posted on

    Now that you are faced with an Domain Tax Audit

    One of citizens’ biggest concerns is the threat of an Ecommerce tax audit. A tax auditor is about as fearsome as a dentist with a drill preparing to deliver a root canal operation. The critical thing you can deliver during an IRS tax audit is stay calm and try not to give the IRS auditor any cause to be more suspicious than she alreadyby definition is. Knowing tax concepts can be helpful with the domainer tax guide.

     

    Getting audited does not necessarily mean you did anything unlawful. The IRS could simply desire to verify some receipts or other supporting details not documented on your tax return. This type of tax audit, known as a correspondence audit, and is the most routine type of audit. It is also the easiest type of audit – if there is such a thing.

     

    When your tax return is going to be audited, the Internal Revenue Service will inform you about the specific areas of your tax return that will be covered. This makes the exam process to be safer for you, since you’ll discover an excellent focus of the documents you need to collect.

     

    When you get served an exam notice, you will want to decide whether you need to handle the exam yourself or whether you need to enlist the services of a tax lawyer. The key value to hiring a professional to represent you is that you have professional assistance through the review process.

     

    You may desire to handle the exam yourself if you routinely handle your own tax return and if you feel confident going through the process alone. The cost aspect of the exam might also have influence on whether or not you retain a enrolled agent. For example, if the amount that you could potentially owe the Internal Revenue Service is less than what it could cost to hire a tax advisor, perhaps you should cut the cost of the advisor and represent yourself.

     

    Determine whether you need to hire a tax attorney or represent yourself as quickly as possible so you have time to prepare for the exam. If you are representing yourself, then you will want to start getting the documentation together as quickly as possible. Waiting until the night before the audit will only lead to more possible missing documents. For circumstances as important as a tax exam, you should be as prepared as possible.

     

    In the tax audit, only discuss the areas of the tax return that are that were identified in the audit notice. Providing unnecessary information might lead to additional reviews. That, you do not want.