Mistakes on tax forms are not necessarily uncommon. It can be complicated to file taxes correctly, even with the help of software or professionals. Of course, while some mistakes may have little consequence, others could lead the IRS to believe that a person owes more taxes than he or she paid, which could lead to tax collections.
In efforts to file their taxes correctly, New York residents may want to remain aware of some of the more common errors that people fall victim to. For example, not knowing when tax laws change could put some parties in a difficult situation. Contributions to retirement accounts, tax responsibility on alimony payments and much more can change almost any time, so it is important that parties know what they are responsible for.
Additionally, if individuals do not report all of their income, they could end up facing an audit. Many people are picking up side jobs or gigs to help supplement their regular income, and even if they are independent contractors, they need to report that income. If they do not, they could face penalties, collections and other efforts from the IRS.
Of course, it is not always the tax filers who make mistakes. In fact, the IRS can make mistakes, and if New York residents receive notice that they are facing tax collections or that the IRS believes that an issue exists with their tax return, they should not automatically think that it is the taxpayer’s fault. Fortunately, concerned parties can contact knowledgeable attorneys who can assess a situation and determine the best way to handle tax collections or address a mistake on the part of the IRS.