A little while after someone has submitted their taxes, it is possible that an individual might receive a notification for the IRS that they have found or multiple tax problems. New Port Richey residents should know that if they have filed their taxes correctly, they should never receive any type of correspondence from the IRS. Some issues that the IRS is trying to reach people about are more common than others, but most of the common reasons has to do with inconsistencies with their tax filings.

Mismatched or Unreported Income

There are many types of mistakes or errors that people can make when they are filing their taxes each year, but one of the most common issues that people deal with is when their income does not match with what they are claiming. When it comes to this kind of tax problem, New Port Richey residents should know that the discrepancy lies in the amount of income they are reporting, and the amount of income that their employer has reported. This type of form or notice is known as a CP2000 notice, which the IRS tells people to correct the amount that is not matching up with their records.

Failed to File a Tax Return at All

Another issue that is more common than people might think is when people fail to file a tax return at all for last year’s income. It should be noted that filing a tax return is not required if someone does not owe any money, but this can actually create additional tax problems. New Port Richey Residents should be aware that Failing to file a return when they are owed a refund puts them at risk of losing out on receiving the money they have owed. Most people are not aware that these types of issues have a time limit of three years to correct the problem if they want to collect any money they are entitled to.

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