CPAs Make Mistakes On Your Tax Returns And How To Avoid Errors

CPAs do make mistakes on tax returns inadvertently. Sometimes these errors are noticed by the IRS but often they do go unnoticed.

Trusting someone else with money is equivalent to trusting that individual with your life.  Based on this, would you really trust your CPA or an investment adviser or a money manager with your life? If not, why would you trust them with your money?

How To Avoid Errors In Your Tax Returns

Study the high-level details of what are the changes when a major tax change occurs; and identify in advance how it might impact you.

Nothing looks worse in an audit when it turns out your 1099 was lost in the mail and the IRS knows your interest income and it was not included in your returns.

Make sure you maintain a list of all your financial accounts

Handover your documents to your CPA in advance so you have adequate time to validate the returns before they are filed.

Validate your 1040 (usually if you have wages), Schedule E (rental) and Schedule C (business). The IRS website does a pretty decent job of listing how to calculate each line on every form in case you have questions.

Add up all your sources of income on the above 3 forms and make sure it is accurately reflected.

Look at every line in the form for deduction and check if you have something for that particular line and if not; you should be asking your CPA about it.

Make sure you take every possible deduction you are legally entitled. Often people are too worried about a potential audit and skip several eligible deductions.

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