Alert: 5 common mistakes in tax filing that the IRS penalizes with up to $5,000 in the United States

One of the factors that most characterizes the tax season in the United States is the list of errors that taxpayers commonly make in their declarations. But although this may seem like a minor offense, the Internal Revenue Service (IRS) can impose a series of fines ranging from $5,000 to more serious penalties, depending on the offense.

Therefore, in order to avoid any fines, here are some of the most common errors you should avoid when carrying out this process correctly.

The most common errors when filing your tax return

Including errors in the return

This type of error includes a series of oversights, such as adding incorrect information, miscalculating income, or not following the processes established by the IRS, among others.

In response to this, the agency provides a step-by-step guide that is important to consult before filing the return to avoid fines.

Claiming excessive refunds

Although it is a right of taxpayers to file their tax return, this action is sometimes intentionally done in order to obtain greater benefits.

In response, the Internal Revenue Service conducts investigations to determine, initially, if this activity was unintentional. In such cases, there is an opportunity to correct and re-file the return. Otherwise, a fine is imposed.

Providing false data or information

Among the variety of errors or incorrect actions by taxpayers, this is one of the most severely punished by the IRS. According to the agency's statutes, it is completely prohibited to submit false or misleading information.

If the information cannot be verified, the penalty is immediately imposed on the taxpayer.

Failing to report income

Similar to providing false information, not reporting all income earned during the fiscal year is a highly punished action by the IRS. It is essential to report all income that must be accounted for by law each year.

This error often occurs with freelance workers or those without formal employment contracts. In response, the IRS takes immediate action to address these actions.

Tax evasion

In addition to the previous errors, this action is perhaps the most severely punished by the U.S. agency. Unlike the others, where corrective actions can be taken, this activity is instantly sanctioned.

Furthermore, there is the possibility of facing additional charges, in addition to the fine, for engaging in this action.

It is important to note that, in the event of any error, the IRS sends a notice of fine. In most cases, the error can be justified or appealed. However, when faced with the possibility of receiving such a message, it is vital to carefully review the return before submitting it.

*This article has been automatically translated using artificial intelligence