Robert J. Fedor, Esq., L.L.C.

Avoid these common tax mistakes: part II

In our last blog post we discussed some common tax errors that, if made, can end up becoming a major problem for offending taxpayers. In this post we'll continue to look at some of the more common tax mistakes reported by the IRS that can end up costing an individual time, money and, in some cases, even his or her freedom.

In addition to mistakes related to math errors and tax deductions, some taxpayers error when taking advantage of certain tax breaks. Parents who have at least one child in daycare are often eligible to claim a tax credit associated with that care. However, those parents who use what's known as a dependent-care flexible spending account are not allowed to also take the tax credit. Similarly, individuals hoping to take advantage of education credits must also be careful not to claim or get credit for an expense more than once.

Failing to report assets held in a foreign account is another way to get into big trouble with the IRS. The IRS and U.S. federal government began cracking down on individuals with foreign bank or investments accounts in 2009. Since that time, stricter regulations have been established to ensure qualifying individuals disclose any and all accounts and assets.

The examples provided in these two blog posts are just a sampling of the many mistakes taxpayers may make when filing a tax return. In cases where an individual is facing criminal charges related to a tax error, an attorney who handles tax crimes should be consulted and, if warranted, retained.

Source: The Wall Street Journal, "Don't Make These Tax Mistakes," Stephen Webster, Jan. 31, 2014

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