Law Firm Of Dennis Eshman, PLLC
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FAQ - Tax Planning

Things That May Trigger an "Inquiry" or an Audit and Delay Your Refund

  • Your handwriting is illegible.

  • Your social security number or your spouse's number is missing.

  • Your social security number does not match the records kept by the IRS and Social Security Administration.

  • Your dependents' social security numbers don't match the records kept by the IRS and Social Security Administration

  • You have incorrectly stated the last name of a dependent.

  • You have made math errors.

  • You have made an error in transferring a number from a schedule to your 1040.

  • You claimed too many personal exemptions.

  • You took the standard deduction and somebody else claimed you as a dependent.

  • You have taken the wrong number off the tax table.

    TIP: Use a pen to circle the row and column that applies to you. The place where they intersect will be circled, and that is the number to transfer.

  • You did not sign your return.

  • You did not include your daytime telephone number. (It is not required, but it may speed your refund if an IRS employee has a quick question for you).

  • You paid somebody to prepare your return, which is deductible and that person did not sign your return.

  • You did not attach your W-2s.

  • You did not attach all the schedules and forms that you should have.

  • You did not acknowledge all your income. (The IRS has ways of knowing)!

  • You owe little or no tax due to excess deductions and credits that subjected you to alternative minimum tax, which you did not calculate and pay.

  • You claimed a deduction for a home office. (The IRS pays particularly close attention to deductions involving a home office).

  • You claimed substantial investment losses, especially partnership losses or "passive activity" losses. (Think Tax Shelter. Some work, some do not).

  • You claimed a deduction for a swimming pool, hot tub, or health-club dues.

  • You claimed a large deduction for medical expenses.

  • You filed as a head of household and did not properly list your dependents, or have listed someone as a dependent who does not qualify.

  • You underreported your tip income.

  • You have claimed a large amount of business expenses.

  • You have claimed large charitable contributions.

  • You have claimed a deduction for giving a car to charity.

    TIP: The IRS wants to make sure that you donated a car out of generosity, because this is an easy way to claim a big deduction. You can only claim the fair-market value, and you had better be able to prove it. If the car is in good condition, have the car appraised and attach the appraisal report to your Form 8283. If you do not think it will fetch very much money, attach photographs showing its condition or attach a clipping of want ads stating the asking prices for the make and year of your car or similar models.

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