Top Errors on Tax Returns

The IRS recently released a list of the top errors found in returns submitted by individuals and tax preparers. The entire list is provided below but I wanted to highlight a few key areas. The easiest way for you as a tax preparer to keep from making mistakes on returns in the future is to identify them up front and take measures to correct them. Tax return errors can cause a number of problems. First and foremost an error on a return could result in a rejected return therefore extending the time required for your clients to receive a possible refund. These errors could also skew the refund amount or amount due. All of this can cause dissatisfaction in clients and therefore result in lost business for you. At the end of the day we have an obligation as tax preparers to provide the best possible service to our clients. In many cases we are provided inaccurate or incomplete information by our clients which can result in some of these errors. However, many of these errors are a result of oversight on our part. TaxSlayer Pro has many error checking features to help prevent such mistakes. In many cases information is entered more than once and must match in order for the return to process. This is part of our effort to make you the best preparer that you can be. Here is the list of the most common errors or professionally efiled returns…are any of them common for you?

 Form 1040EZCount
1We have calculated the amount of repayment installment for the First-Time Homebuyer Credit that is due and added it to your total tax.;12
 Form 1040A 
1The amount of tax entered was incorrect based on your taxable income and filing status.151
2We have calculated the amount of the repayment installment for the First-Time Homebuyer Credit that is due and added it to your total tax.47
3We changed the amount claimed as education credits because there was an error on Form 8863.15
4For one or more of your dependents the last name doesn’t match our records or the records provided by the Social Security Administration.10
 Form 1040 
1We changed the amount claimed as taxed you paid on your Schedule A because it was figured incorrectly.593
2We changed the amount of taxable social security benefits because there was an error in the taxable amount.226
3Earned Income Credit was figured or entered incorrectly.186
4Taxpayer notice was sent for miscellaneous errors.149
5We have calculated the amount of the repayment installment for the First-Time Homebuyer Credit that is due and added it to your total tax.133