Common Business Tax Return Errors and Corrections

We always rush towards the end to submit our personal tax returns and take time until April 15th. In the hurry to submit the tax returns, we commit mistakes without our knowledge. Most of the software services avoid the common errors. From your end, it is your responsibility to double check the form and check the list of common tax return mistakes that are stated below so that you can correct the mistakes and avoid the same in future.

Most Common Business Tax Return Errors

The IRS has listed below the most common and frequent errors on the tax returns, which includes the business tax returns.

  1. Missing or incorrect Social Security number (SSN) or Employer ID numbers.
  2. Wrong tax entered depending on the taxable income and the filing status.
  3. Computation errors to figure the taxable income, withholding and estimated tax payments and common deductions, and common credits.
  4. Estimated and withholding tax payments are entered on the incorrect line
  5. Mathematical errors that include both addition and subtraction.

Other Regular Tax Return Filing Errors

  • Missing or unreadable name or contact address.
  • Checking no filing status or checking more than one filing status.
  • Missing or incorrect income, credits, and deductions, or not entering the correct information on appropriate line.
  •  Lacking to put brackets to specify the negative amounts.
  • Failing to calculate the tax properly from the tax tables.
  • Failing to provide the date and sign the return, when it was a joint return, missing the sign of the spouse and the date.
  • Missed to attach the 1099 MISC forms that you received for the income if the income tax was held or not.
  • Failing to provide all necessary schedules including Schedule C in the sequence number order.
  • Missing to send the return in order to correct the location of the IRS.
  • Forgetting or disregarding to paste the postage stamp on the envelope.
  • Missed to enclose the check payable to the “United States Treasury” and failing to include the name, contact address, taxpayer ID, tax form, contact number and tax year on the payment.
  • Missing or forgetting to add the financial institution account and routing numbers for the refund direct deposit. 

How to Solve These Common Tax Return Errors? 

When the mistakes are simple such as calculation error, you may wait for the IRS to correct them. But when the mistakes are considerable, then you may need to file the amended tax return. The form for using this return is based on the business type.
You have 3 years of time from the return filed date to file the amended tax return. But when the mistake is related to the owed tax amount to the IRS, then you need to file and pay the tax amount as soon as possible. When you have further queries about the listed errors or other new errors, you may directly contact the IRS and explain your current problem and situation. Above all the discussed points, you need to be more cautious while filing the forms with the IRS in order to avoid the bad outcomes.
 

By admin