7 Most Common Tax Filing Errors and Mistakes to Avoid

The risks of committing avoidable tax flaws, especially towards the tax filing deadline, are usually high, some with negative consequences that may even beckon a tax audit or unnecessary delays in returns-processing. Explained below are seven such errors that can be avoided by simply double-checking completed returns before submitting them to the IRS:

1. Wrong Social Security Numbers: Ensure that all the Social Security numbers, be it for self, children, spouse, or dependants are accurate. The IRS has rated this as the most commonly committed return error and you therefore, must double check. This should be done whether you are filing on paper or online.

2. Name Errors: Ensure that you use your own name, especially if you are married and file separately as opposed to your spouse's. See to it that the name on the return matches the one on your Social Security card. Contact the Social Security administration for a new card if there are any changes to the name(s).

3. Incorrect/Multiple Filling Statuses: You can only file under one filing status at a time. Even though online tax preparation software don't accept multiple selections of the filing statuses, it is common for those filing on paper to check off more than one status at a time. Ensure that this doesn't happen.

4. Signing of All Signature Areas: Your tax return is only valid if it is signed accordingly by all relevant parties. If you are filing a joint return, make certain that your spouse signs as well, because failure to do this may lead to delays or even rejection of the return altogether.

5. Math Errors: Mathematical flaws are common, especially when working out the amount of tax due manually. Avoid this by only using the most current version of the tax tables, counter check the math, and make necessary corrections.

6. Claiming Credits and Deductions: The regulations to IRS credits and deductions are constantly changed every year, and you must check to ensure that you qualify for some, like the Earned Income Credit, which is calculated based on the gross income before claiming. The same applies to deductions, some of which are age specific. To avoid any delays in the processing of your return, only claim credits and deductions those that you are eligible to.

7. Routing and Account Numbers: Most taxpayers claiming refunds prefer direct deposits from the IRS, which can only be made possible if you provide accurate routing and bank account numbers. It is very easy to correct this error; just review the details before filing.

Finally, feel free to apply for a tax filing extension if you cannot file the return in time. This will ensure that you not only evade common tax errors, but also the IRS interests and penalties.

How to do a Fast Online Individual Tax Return

Doing a tax return is often not all that easy and many people dread the end of the financial year for this reason. However, if you can be fairly sure that you will get a tax refund, it sweetens the deal a bit. The trouble is that the refund can often take months to come through. However, it is now possible to do a fast online individual tax return and get your refund much sooner.

When you have plans for your tax refund it seems to take forever for it to arrive. You may want to use it to pay off some debt, go on a little holiday or buy yourself some treat that you would otherwise not be able to afford. It seems unfair that you have to wait for so long to get what is legally yours. Cynics may think that the government is using their money to get interest on, when that benefit should be coming to them.

However, the delay is mostly because there are now many people and they all need to be processed at the same time of year. This is going to take longer because the government only has the same number of employees; they don't get more staff to deal with the end of the financial year work. Luckily, technology is working to everyone's advantage; chores that once took days or weeks to complete can now be finished with a few clicks of your mouse – or someone else's mouse.

You can now get a fast tax refund if you complete your tax details online. You can do this with an accountant that offers an online service and get peace of mind in knowing that your return will be looked over by a professional. This will ensure that you get everything you are entitled to and that your tax return will be checked over by professional eyes. Accountants often know things that you don't about what is and what is not allowed. And that money is better off in your pocket than sitting in some government office.

Doing a fast tax return by using an online accountant is much cheaper than paying an accountant to do all the work. You do a lot of the work yourself to save money, but still have the advantage of an accountant to check that all is done the right way.

In addition, you know at the outset just how much it is going to cost, so you can budget accordingly. You will get an estimate of what your refund will be and can plan happily on just how you will spend it when it comes.

India Must have Independent Regulator for Auditors

Supporting the capital market regulator Sebi's proposal for an independent auditing regulator in India, global auditing and consultancy major PwC has said there is an urgent need to have a strong and powerful watchdog for this business.

"It's a great suggestion on the Sebi's part, but the decision has to be taken by the government, including by the Corporate Affairs Ministry and the Finance Ministry. There has to be a political will and then we can emulate the global example," PwC India Chairman Deepak Kapoor said on the sidelines of World Economic Forum Annual Meeting 2012.

Sebi late last year had said it would write to the India government, pointing out gaps in the regulations for auditors and suggest possible solutions.

The market regulator is already believed to have written to the government to consider a separate oversight authority for auditors, which is independent of audit profession.

Separately, Sebi plans to put in place a proper mechanism "for enforcing compliance with auditing standards by the auditors of listed companies".

Currently, the Institute of Chartered Accountants of India (ICAI) regulates accounting and auditing professions.

ICAI is a licensing-cum-regulating body of the audit and accounting profession in India. PwC's Kapoor said that ICAI is doing a reasonably good job as both a regulator and an institute.

"But we need to move with the times. A number of large countries such as the US and even some smaller ones like Sri Lanka have independent regulator for auditors. But India has not got one. Here also it is a case of India's image being hit abroad as people might say that you don't even have an independent regulator for auditors", he said.

Giving example of the US, Kapoor said the country has separate regulator and an institute for the auditing profession and both of them are doing great jobs.

"The punishment has to come from the regulator for any wrongdoing and not the institute. It is a clear case of conflict of interest. There is indeed a crying need for an independent regulator for auditors. ICAI has done a good job, but there are proven models in other countries for having an independent auditing regulator," he added.

The Benefits Of Independent Tax Tribunals

States are increasingly turning to independent tax tribunals. Most states now have either a judicial-branch tax court or an administrative-level tax tribunal that is independent of the state’s tax authority. Taxpayers and practitioners have pressed states for independent decision-making bodies for several reasons, including that the judges or administrative law judges who write decisions are impartial and knowledgeable in tax issues and that the opinions should more consistently and transparently apply the tax law because they will be published. All in all, independent tax tribunals have a positive impact on state tax systems.

In its first decision, issued October 1, the tribunal addressed whether taxpayers could obtain a three-year lookback period rather than a five-year lookback period. A lookback period is the number of years that a taxpayer could be required to amend her state income tax return and pay any tax and interest due.

In the case, the taxpayers discovered some questionable deductions and filing statuses on previous returns prepared by a now-deceased tax return preparer. The taxpayers notified the Department of Revenue of the errors on their previous years’ returns under the state’s voluntary disclosure program.

The legal issues at stake in the tribunal’s opinion admittedly aren’t that important. What is important is that the tribunal has begun to issue opinions, and its first opinion was rich with legal reasoning. It bodes well for the future.

The tribunal will also eliminate some of the bias that existed with all tax disputes in the state. It will reduce the bias against taxpayers and improve transparency by providing clarity and consistency in the administration of the state’s tax laws. With any luck, other states will take notice.

Requirements for Chartered Accountant in India

A part from successfully completing the Graduation diploma of Chartered Accounting, candidates interested in CA must clear the enlisted practical experience requirements to be acknowledged as a member of the institute.

Chartered Accountant Requirements

• 3 years full time experience in an organization accredited by the Institute – Falling for 3 years of membership, candidates must be in recognized employment, along with finishing their graduate diploma studies.
• Mentored by a Chartered Accountant – A mentor must belongs from one of the reckoned overseas bodies or just be a member of the institute.
• Manifested required levels of technical and non technical competency figured out in the candidate practical experience activity log – Via a logbook :
• Taxation
• Financial accounting and reporting
• Business and commercial law
• Management accounting and control
• Finance and financial management
• Audit and assurance

Along with technical areas, candidates must also depict evidence that they have acknowledged 100% competence in all of the following non-technical areas:

• Information Technology
• Organizational and business areas
• Professional skills
• Professional values, attitude and ethics

In the last to be admitted to membership, interested person’s must subject a Final Mentor’s report, completed and signed affirming they have acquired the required level of workplace competence.

Why Get Professional Tax Assistance During an IRS Audit

Many people get audited by the IRS. Find out how having an enrolled agent on your side during this process can benefit you and can help you navigate any tax penalty.

Taxes are not usually fun for anyone, whether you're dealing with them as an individual or as part of a business. Getting audited by the IRS is perhaps the only thing less pleasant than doing your taxes in the first place. Find out how securing income tax audit representation from an enrolled agent can help you during this process. Whether you need small business tax help or individual assistance, having audit representation can make a huge difference before, during, and after the audit process.

An IRS audit is performed in order to confirm that both of these goals are met. During an IRS audit, the government will go through your tax and financial records with a fine-toothed comb. If your tax records are incomplete or inaccurate in any way, or you underpaid your taxes, the IRS will assess the appropriate penalties.

An agent will also be able to help you collect and prepare all the necessary information that you need to successfully complete an audit. He or she will be able to double-check to make sure you have all the paperwork and documentation that is required and organize all of it in a way that will be useful for both you and for the IRS.

Your agent can also help you stay informed about what your options are as the audit progresses. If the IRS determines that you do owe back taxes, your tax consultant can help you decide what to do. If your enrolled agent is part of a tax resolution team, he or she can provide tax helpin the form of resolution services. If this is outside of your tax advocate's scope, he or she will at least be able to point you in the direction of appropriate tax relief so that you can get your finances back on track.

Having the knowledge and experience of an agent at your disposal during the audit process can mean the difference between getting slapped with tax liens and other penalties and being able to negotiate an offer in compromise with the IRS.

Smart Ways To Pay Less Income Tax

The government wants you to submit your taxes honestly every year. They government requires the finances for a smooth provision of education, health and other services. It does not mean that you have to pay more than you actually do. These tips may be helpful for you in paying less income tax.

Planning

Finance expertise advice that planning for the tax bills should begin as soon as the year begins. This basically means that you have to narrow down all the places where your money goes on daily basis. You should collect all the receipts you receive from spending because they might save you a good amount of tax. You have to be very cautious with the job related expenses either it be education or office stationary etc.

Secondary job

This is one of the most important advices that can help you in increasing your deductions. You may start a small business as a hobby which will bring you some small amount of money. Business like you can start directing, make candles for sale or start acting. All you have to keep in mind is that open a different bank account for this income different from your personal one.

Go green

Going green is the most effective and best way to save bill on taxes. It helps you save money as well as is making your surroundings eco-friendly. For any sort of construction you may choose eco friendly material like if you want to repair your roof you can buy a material which is eco friendly. You may use a car which runs by electricity instead of gas or diesel/petrol.

Further planning:

It is very important to make a pension plan or a retirement plan. This is basically securing your future. This will ensure what kind of lifestyle you will maintain when you finally call it quits. You’ll live a dignified life. You’ll be able to pay your bills on time as well as enjoy deductions while still working and having fun.

Everyone needs to know how they will save on almost anything. To feel less held back by bills, all you need to be is a little smarter. The ways you save bills on taxes will lead you to a life you want after retirement.

For More information, please visit http://www.club4ca.com/formats