Tax time can be a very hectic part of your financial year, and all too often, small mistakes can lead to big headaches.
Here are some common filing errors to watch out for:
If you have received a corrected tax form from the IRS, make sure that you are not referencing previous (uncorrected) forms as you prepare your filing. This may seem like an obvious tip, but when it comes down to the deadline and you are dealing with lots of paperwork, it’s easy enough for an old form to slip back in.
Make sure that you are correctly reporting cost basis on any investments sold during the tax year. Not reporting cost basis, or reporting it incorrectly, can result in the IRS assuming it is zero, and this will result in the largest possible gain
Owners of entities that pass through taxes to shareholders will typically be required to file a K-1, and in most cases, this will be one of the last forms that you will receive. Make sure that you address and include the information on this form in your own filing.
Don’t forget that IRA contributions for the 2013 tax year must be made by April 15, 2014.
Don’t forget to identify all of your charitable contributions and in-kind contributions over the course of the year. Keeping an on-going record of your gifts between tax seasons is advisable so that you have complete picture when it is time to file.
HawsGoodwin does not provide tax or legal counsel. All matters in this regard are handled through collaboration with a Company’s accounting and legal advisors