Tax filing can feel like heavy-duty work with constant stress to do everything on time. On top of that, frequent changes in the law can be a significant hindrance for New Yorkers, which can lead to unintentional mistakes.
So, what can a taxpayer do? A common question with a relatable, simple answer! Find a tax consultant who can work on your behalf. Preparing tax and planning finance and bookkeeping for you.
Things feel straightforward, right? Let’s get into details and find out what common mistakes a regular taxpayer makes and how to avoid them.
Understanding Common Tax Mistakes
Do you know that one of the major causes of penalties is arithmetic mistakes and missing income sources? For you, it can be an ordinary typo, but the IRS counts every detail. If you fail to satisfy, there will be consequences in terms of penalties or a delay in your tax return. Below are some pitfalls that can drag you down and specific ways to help you avoid them:
Mistake 1: Filing Earlier:
While a taxpayer must file their returns early, premature filing can also lead to errors and mistakes. What if a tax law changes at the last minute? You will have outdated information that won’t work. Furthermore, you might haven’t received all your W-2s, 1099s, or other forms.
Solution:
Mistake 2: Missing or inaccurate SSN:
It might feel like a minor typo, but missing your SSN (social security number) or mixing up the digits can create confusion for the tax department. Financial matters need attention to details, and mixing up minor details turns into a terrific blunder. Imagine waiting for a tax refund for an extra week just because of this minor mistake.
Additionally, in worst-case scenarios, your refund request can be rejected due to the automated IRS (Internal Revenue Service) application system.
Solution:
Let a tax return preparer handle it for you. If you are planning to do it all yourself, double-check your social security number. In addition to that, check your name and spelling. Most of the IRS systems are fully automated, and typos can result in rejection. However, you can re-file the forms if something happens.
Mistake 3: Unsign Forms:
Solution:
Simply make sure to fill out the form correctly. Check for signature points and sign them right away. If you are working with a CPA (certified public accountant), rely on something other than them for the cross-checking process.
Mistake 4: Incorrect Bank Account Numbers:
Watch out! It can be a mistake or your CPA scam tactic. Yeah, you get it right. Some scammers also put their account details instead of yours to steal your refunds from the IRS. Thoroughly checking your form is all you need to do to keep everything running smoothly.
Solution:
Mistake 5: Name and SSN Mismatch:
Have you changed your name after marriage or adoption? If yes, it can cause trouble. The tax department will flag this mismatch, which slows down your tax return process.
Solution:
Update your name with an SSN. Contact the SSA (social security administrators) and discuss your case. There will be a short form to update your name. Additionally, you can get help from a professional CPA who is experienced in error correction and handling.
Mistake 6: Reporting Incorrect Income:
Solution:
Provide the correct details. Telling the right income with all W-2s or 1099 forms is the sweet spot to keep things lined up.
How a Tax Consultant Can Help
There are tons of other mistakes that self-prepared tax preparers make. The story continues after these six mistakes. There can be math mistakes, figuring credits or deductions mistakes, incorrect filing status, and a lot more.
A better approach to saving time and doing everything right is hiring a tax preparer experienced in tax planning, tax preparation, and bookkeeping services. In short, a tax consultant can save you from the stress and hassle of managing everything single-handedly.
However, you must know the difference between each tax professional. EAs, attorneys, tax consultants, and accountants have different skill sets and offer other services.
The Role of a Tax Consultant vs. an Accountant
People confuse themselves between tax consultants and accountants. Both are related to taxes, but they perform different work for clients.
Tax Consultants:
Tax consultants, typically known as tax advisors, primarily focus on tax planning and tax law issues. They hold higher degrees in tax liability and fraudulent case handling.
You can count on tax consultants to get personal and business tax advice, including how the current situation is and guidance to minimize future business taxes. Search for “Best Tax Advisor NYC,” and you will indeed find a reliable tax advisor for your business.
Tax Accountants:
Tax accountants have more focus on tax filing, representing your case to the IRS, and providing audit reports for your personal and business taxes. Their services include bookkeeping, tax preparation, submitting your documents to authorities, and working on the nuts and bolts of tax laws.
Benefits of Hiring a Tax Consultant in NYC
NYC has its own tax laws, which differ from international tax laws, such as offering credits on the STAR (School Tax Relief) program, EITC (Earned Income Tax Credit), and property tax benefits. Hiring a local tax consultant in NYC will give you a lot more tax relief.
- A tax consultant NYC knows the local tax laws, offering you more refunds and fewer tax deductions on your income.
- The best tax advisor NYC will help you better plan your income sources and business interests.
- They can assist with resolving disputes with local tax authorities.
- Help with complicated filings, including those involving multiple income sources or business interests.
FAQ (Frequently Ask Question)
1- What common tax mistakes specific to NYC that a tax consultant can help with?
A tax consultant can help you with tax preparation and avoid all mistakes related to the filing process. In addition, he can advise you on the right time to file your tax returns. There are specific laws in NYC that a resident might need to be made aware of, and a tax advisor can help with that.
2- How can I find a reliable tax consultant in NYC?
- Look online, find reviews, and interview at least three tax consultants before giving them your tax details. Moreover, you can search for a reliable tax consulting service that fits your needs.
3- What are the key differences between a tax consultant and a tax accountant?
The critical difference between a tax consultant and a tax accountant is their service. Both offer different services to each other. A tax consultant is good for planning taxes and advising you on tax laws. On the other hand, a tax accountant prepares and files a tax return on your behalf.
4- What should I do if I’ve made a tax mistake or missed a filing deadline?
Consult a tax advisor; you can’t flip the mistake. However, you can re-file your tax forms once they are rejected. However, a tax consultant will be the best bet if you have a more complex situation.
Conclusion
Self-tax preparation isn’t suggested anyway! If you want to enjoy mental peace during tax season, it’s better to hire a tax service and let them handle the rest of the work. Use your research skills to find a highly reliable tax service provider or accountant and discuss with them your financial situations, income streams, business interests, and everything else relevant to taxes. Remember, mistakes in tax preparation can result in penalties. So don’t hesitate to hire a professional service.
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