What Not To Do On Your Taxes According to Experts

Being careful is import when completing your taxes and this year should make you a little bit nervous if you are preparing your taxes yourself. Even professionals are making a lot of mistakes according to the Government Accountability Office.

In a study done in 2014, 10% of preparers did not calculate a normal tax return correctly. The final error rates for tax preparation according to the study was 50% for self-prepared returns and 60% for professionally prepared returns. Of course, the professionals more than likely handle the tough returns. Still, those are alarming numbers.

Some errors are obvious mistakes while others are harder to deduct, keep these difficult areas in mind this tax season: foreign investments, charitable giving, real estate taxes, gambling winnings, and state refunds.

If you have foreign investment accounts or savings accounts, make sure to report them to the IRS. If the IRS is able to discover the account later, you can face a penalty up to $10,000.gaooffice

When making contributions to charity, keep a record so you can prove that you gave to a qualified charity. And when purchasing an item for a charity event, you can only deduct the portion above the value you are receiving.

Real Estate taxes can be a trick if you just purchased the home as some are paid on the closing statement. And an office in the home is a great deduction, but make sure not to claim more space than the office occupies.

If you have gambling winnings during the year, offset those winnings with loses you experienced and documented. You can’t take a lose of gambling, but limiting the amount of your winnings that is taxable is really nice.

Finally state refunds. State refunds on tax return filings are taxable the next year as income on the federal return. Yet federal tax refunds are not taxable, you get to keep the full amount of those funds.

 

 

Beware Of Identity Theft

Beware Of Identity Theft

Couple accused of stealing identities in order to receive over one million in tax refunds.

Authorities state that a couple are accused of stealing over five hundred and fifty identities from people in order to acquire one and a third million dollars in tax refunds in 2011.

Samantha Towns, 30, and Roma Sims, 34, have been arrested and will have hearings today in the United States District Court. The couple are being charged with identity theft, wire fraud and conspiracy.

Multiple victims are from the state of Kentucky and many claim their income from disability or other government assistance, according to LIsa DiSalvo an IRS agent investigating the case.

DiSalvo stated the theft had been identified as a criminal complaint through the IRS Scheme Detection Center. This department seeks out fraud through identification of numerous refunds deposited into individual bank accounts, multiple tax refunds filed through one Internet address, discovery of deductions on tax returns and unverifiable incomes.

Sims from 1253 Flagstone Square in Westerville and Towns from 2681 John Steven Way in Reynoldsburg, operated their plan posing as X-Press Taxes and Accounting Services and Express Tax & Accounting according to the IRS.