Common Mistakes of Tax Consultants

August 19, 2019

Having an individual or business help you with your tax filing can be the difference between a smooth, successful filing experience and a nightmare interaction with the IRS. With a tax consultant, you know you’re getting all the deductions you are entitled to and aren’t paying more than you owe. However, it’s important to realize that tax consultants are human and can make mistakes.

Most of the time, these mistakes are easy to correct, but the tax consultants have to be aware that they are making them. This requires a careful system of checks and double checks to make sure they haven’t missed anything, and a great tax consultant will always be on the lookout for these common mistakes:

Issues With Income

One of the most common mistakes that tax consultants make is overlooking or inaccurately reporting income. You may forget to tell your consultant about income, and some people deliberately try to hide some of their income to save on taxes. However, you need to claim all the money that you make to ensure that you are paying what you owe. If the tax consultant is under-reporting and the IRS conducts an audit and discovers this, it can get you into a lot of trouble. A good tax consultant will help you double-check that you haven’t missed anything.

Unaware or Unsure of the Extension Rules

If you don’t pay your taxes on time, you can get hit with fees and penalties from the IRS. Even if you work with a tax consultant, they may not understand or they may be unaware of the current extension rules.

There’s nothing wrong with having to file for an extension, and if you do it in time, the IRS is more than happy to grant you one. However, you need to know exactly when these are and what paperwork you’ll need to complete the process. While you may trust your tax consultants to give you the right information, since it’s your money on the line, you may want to double-check to find out for sure if they are right when it comes to the extension and late payment rules.

Bending or Breaking Deduction Rules

In an attempt to help you save money, and get your business next year, your tax consultant may do some creative accounting. This could include mixing your personal and business expenses, which will raise red flags with the IRS and could potentially lead to an audit. There are strict deduction rules, and if they are broken, you will wind up paying the penalty.

How You Can Prevent Mistakes

Tax consultants are human, so they are prone to make mistakes. There’s nothing wrong with double-checking their work and ensuring that the tax return is error free so that you won’t get into trouble. Here’s what you should do as you work with your consultant:

Double Check Before You Sign

Before you sign the tax return document, double-check to make sure everything looks correct. If you have questions, ask. If you think that something might be wrong, don’t sign the paperwork until it’s corrected or you get an explanation of why it’s like that.

Give Your Tax Consultants the Right Info

Tax consultants can only work with the information they are given. They might suspect they’re missing something, but they don’t know unless you tell them. If you give them incorrect or incomplete information, they can’t do an accurate filing for you.

Know Your Client Rights

More often than not, you’ll have to sign a contract with the tax consultant. Make sure to read it thoroughly so you know what you are responsible for should you get audited by the IRS, and what happens if consultant themselves make mistakes.

Finding the Right Tax Consultants

Tax consultants are still human and can make mistakes. However, finding the right one that will meet your needs and help you succeed is possible. Contact Geaux Tax Resolutions LLC today to see how they can help with your tax needs.