Tax Lawyer Jacksonville, FL

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If you have been audited by the IRS, it’s important to get in touch with a tax lawyer Jacksonville, FL. Getting audited can be nerve-wracking, and an experienced lawyer from Crepeau Mourges may help you handle the matter. Here are a few common reasons why the IRS may audit you.

Underreporting Income

Some people may try to leave out some of their income on their taxes. However, this can trigger an audit. At the beginning of the year, you will receive the proper W-2 and 1099 forms, which states your income from the previous year. The IRS also gets this information. Therefore, if you don’t list some of your income, they may find out about it and audit you.

Making Math Errors

The smallest math error on your taxes can trigger an audit. For instance, if you forget to include one zero on your income, the IRS may audit you. Even if it is an honest mistake, you may still face fines. As such, you should double check your numbers on your taxes before submitting them to the IRS.

Overstating Deductions

Whether it is donations to a charity or business expenses, your deductions should be accurate. If you overstate your deductions, the IRS may find out and audit you. For instance, if you claimed you made a big donation to a charity, but it is out of proportion to your income, it could be a big red flag. That is why your Jacksonville  tax lawyer may advise you to keep receipts for everything. 

Claiming Non-Existent Dependents 

Some people claim non-existent children to try to minimize their taxes. Others may make an honest mistake, like divorced parents claiming dependent children on both returns even though they do not file jointly anymore.

Earning A lot of Money

Although there is nothing wrong with making a high income, it can increase your risk of getting audited by the IRS. They are more likely to audit those with incomes of at least $1 million.

You Reported Business Losses

It is not abnormal for businesses to have more expenses than income when they are first starting out. However, if your business fails to make a profit year after year, the IRS may take notice and audit you.

If you have additional questions about audits, you may want to schedule a meeting with a Jacksonville tax lawyer from Crepeau Mourges soon.

Why You Should File Your Taxes Early

If you have waited until the very last minute to file your taxes, you are definitely not alone. Many Americans put off filing their taxes year after year. While doing your taxes might not be the most exciting task, filing them early comes with benefits.

Here are a few reasons to file your taxes early.

  • Obtain important financial information. If you are making a big life change soon, it pays to get your taxes done early. For instance, if you are buying a house, you may have to show a completed tax form to prove how much money you earn each year. By completing your taxes early, you will be able to show your returns to the mortgage lender.
  • Receive a faster tax refund. Who doesn’t want to receive their refund faster? The sooner you file your tax return, the sooner you will receive your refund. Whether you plan to use that money to pay bills or make a fun purchase, it will be exciting to receive it early. Also rather than filing a paper tax return, file electronically, as you will receive your return in your bank account much faster.
  • Have more time to pay taxes. If you owe taxes to the IRS, you have another good reason to complete your tax return early. If you file your return in January, for example, you will have a few months to pay the taxes you owe.
  • Have more time to find documents. From Social Security documents to expense receipts, you may need multiple documents to file your tax returns. If you do not include the required documents, the IRS may reject your return. This is another good reason to file your taxes early. You will have more time to retrieve these documents.
  • Prevent tax fraud. Unfortunately, identity thieves have been known to go after people’s tax returns. If they obtain your Social Security number, they can file a tax return in your name and keep the refund. If you file your taxes early, you can reduce the risk of this happening. After you file taxes in your name, the IRS will reject additional returns.
  • Reduce stress. Waiting until the last minute to file your taxes can make you feel stressed. If you file your taxes early, you can avoid unnecessary stress and rest easier at night.