How Unintentional Errors Lead to Tax Debt

Last updated on October 31, 2022

Before filing of taxes, taxpayers must ensure that all the information they have included on the return is accurate. Many times, unintentional errors such as forgetting to include an income source or claiming a deduction that they do not qualify for can lead to tax debt. To avoid such errors, taxpayers need to review the information before filing even if they had the return prepared by a tax preparer.

Although the IRS corrects minor miscalculations, if there are major errors that lead to tax debt, they will send a notice. The notice includes the amount of tax debt and the methods of resolving it. Taxpayers must ensure that they resolve their tax debt after receiving the notice so that the IRS does not proceed to aggressive collection actions.

In cases of tax debt, it is important to consult an expert before contacting the IRS. A tax resolution company or a tax professional can give valuable advice on the process of tax debt resolution that will lead to a smooth and beneficial resolution.

Many taxpayers get their tax returns prepared by a professional, but a little carefulness before filing it out can help avoid errors and inaccuracies. An error might not lead to much problem if it is handled efficiently and on time, but it is still better to spend time and effort in preventing errors than in correcting them.