With computers these days, it gets easier for the IRS to locate individuals who fail to report their income. Each year, the IRS receives reporting from your employer, banks and brokerage accounts electronic copies of your W-2 and 1099s. Then, it matches your tax returns against what has been previously reported and looks for mismatches.
Even if it was a completely honest mistake or oversight in forgetting to report some of your income, the IRS has little tolerance for mistakes — and even less of a sense of humor about those mistakes.
They have zero tolerance policy for human error, so it’s always wise to consider investing in a certified CPA Firm in order to make certain no numbers get left behind on your next tax filing.
What’s the lesson here?
• Avoid the fairly common mistake of forgetting or failing to report a portion or portions of your income for the previous year.
• Keep accurate records.
• Check your list of income twice.
• Make sure the numbers are recorded correctly and double check for simple math errors in order to hopefully keep the powers that be at the IRS playing nice.
• If you receive a 1099 that lists incorrect income earned or is clearly not yours, contact the issuer to have the form corrected and refiled with the IRS.
Failing to report income is easy for the IRS to catch these days.
If you’d like some guidance on proactive steps to lower your tax responsibilities, then contact Andrew Brody at Canner Brody and Yan CPAs. We’ve been serving the greater Miami area for over 65 years and are certified with the state of Florida. Call us at 305-728-5109.