Doing your taxes is often annoying, confusing and financially painful. Even tax professionals are confused (and probably annoyed) by the process, according to a recent article in Accounting Today.
A Certified Public Account said that Form 8824 is the one that causes the most befuddlement for him, while a tax preparer said AMT Form 6251 with its 54 steps and 12 pages of instructions is bewildering. It is perhaps not surprising to many that if your tax pro is confused when preparing your return, your chances of an audit likely rise like the morning sun.
Another form apparently widely reviled among tax pros has the catchy title of Form 8889. "Sometimes using this form for health savings accounts is enough to make you sick," notes Accounting Today. One of the biggest sources of confusion for tax preparers, accountants and others: their clients. Sometimes the folks who go to tax professionals for help forget to mention critical details of their finances.
One client forgot to tell an Enrolled Agent that she had withdrawn money from a Health Savings Account. So the EA didn't include that information in the return.
The Internal Revenue Service had been notified of the withdrawal, however. The discrepancy between what the IRS knew and what the woman reported on her return was sufficient to prompt an audit.
No one wants an IRS audit, but Cleveland tax attorneys are available to discuss with you options you have during an audit and options available if you want to appeal the findings.