5 Tips to Avoid Tax Filing Delays and IRS Rejection of Tax Return


 5 tips to Avoid Tax Filing Delays and IRS Rejection of tax return

When it comes to having your tax return prepared and successfully filed, you can easily AVOID these COMMON TRAPS that managed to cause IRS REJECTIONS and FILING DELAYS for several of my clients in this past tax season.

TIP #1: IPPIN - Identity Protection Personal Identification Number 

If you or your spouse APPLIED to the IRS to get this 6 DIGIT PIN number to prevent others from fraudulently filing your tax return, BE SURE that your MAILING ADDRESS is correct with the IRS AND WATCH FOR A MAILED LETTER FROM THE IRS in the beginning of the year that will contain this number.

Without this number, YOU CANNOT FILE your tax return; PLUS, AT THIS TIME, it is FOREVER LINKED to your SOCIAL SECURITY NUMBER and cannot be removed or received EXCEPT BY MAIL or through your IRS account.

TIP #2: FORM 1095-A for HEALTH INSURANCE purchased through THE MARKETPLACE 

Because there is a POTENTIAL CREDIT toward the premiums paid to those who earn a certain amount of income, you must report the information on this FORM 1095-A on your tax return to be able to FILE IT with the IRS. 

Otherwise, you THE IRS WILL NOT ACCEPT THE FILING. Keep a LOOKOUT for a MAILED LETTER from YOUR HEALTH INSURANCE PROVIDER in the beginning of the NEW YEAR PUT IT WITH YOUR TAX PAPERWORK.

TIP #3:PROFIT/LOSS STATEMENT for your business 

This is a document that is used to report the INCOME that your BUSINESS MADE along with the EXPENSES that your BUSINESS SPENT and is necessary for both the PREPARATION as well as any future AUDITS of your tax return. 

If you don't have this document prepared and available EARLY in the year, then it can cause DELAYS with the filing of your tax return.

TIP #5: CLOSING DOCUMENTS for BOTH the SALE and PURCHASE OF YOUR HOME or PROPERTY

The transaction of selling your home, rental property, land, etc. are required to be reported on your tax return - EVEN IF YOU DIDN'T MAKE ANY MONEY from the SALE. The PURCHASE PRICE plus any IMPROVEMENTS MADE along with the SALES PRICE are reported on the tax return and these documents provide that ESSENTIAL INFORMATION.

TIP #5: ACCURATE MILEAGE TRACKING of the business mileage from your PERSONAL AUTOMOBILE that you used in your business.

Whether you completely write off your vehicle or claim the standard mileage, tracking the PERSONAL MILEAGE as well as the BUSINESS MILEAGE of your vehicle is ESSENTIAL to be able to confidently deduct it for your business on your tax return.

These seem to be the MOST COMMON causes for delays and the numbers were a lot higher during the 2022 tax season.

Please contact me with any questions that you may have and KEEP A LOOK OUT or have your FAMILY keep look out for any of those LETTERS to arrive in the mail and put them in a safe place for the UPCOMING TAX SEASON.

Best,

Bonnie Dorsey

www.Dorseytaxplace.com

Serving the USA

972-672-8850

#truckers, #IRS, #taxfilingdelay, #taxpreparation, #mistakesontaxreturn

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