There are many issues that can happen when someone is doing their taxes. Some people have trouble getting their taxes in order, but what are bigger issues is when the IRS says that their records indicate that an individual is having tax problems. Hudson residents might get nervous whenever they get any correspondence from the IRS, but some issues may be a lot smaller than what people work themselves up over. Many people think they are going to get fined or have to face jail times for these mistakes, but this is not true in most cases. Here are some of the most common issues that people report have when dealing with the Internal Revenue Service.

An Error on a Filed Tax Return

Many people want their tax season to be over as quickly as possible, and this causes many people to rush through their tax forms and return them as soon as possible. When someone is rushing to return their tax forms, this can lead to some tax problems. Hudson residents should know that if there is an error with the information on their taxes, they can submit an amended form called a 1040x and have the issue corrected with little to no resistance from the IRS. It’s not unusual for the IRS to make mistakes that people have made, and they will generally notify you that they have made corrections on your behalf.

Mismatched or Underreported Income

Out of all the errors and tax problems, Hudson residents should know that the most common reason why they would be contacted by the IRS is because they reported an income that does not correctly match their records. Most commonly the IRS will send out a CP2000 notice in order for an individual to make the necessary corrections about their mismatched or underreported income. This could be the fault of the individual falsifying their records, but most commonly it is an issue with the employer of the individual, or some information that was entered incorrectly.

*Disclaimer: The views expressed here are those of the authors and do not necessarily represent or reflect the views of Suncoast CPA Group*