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Many taxpayers encounter similar issues when dealing with the IRS. Recognizing these problems is the first step toward solving them.
This guide breaks down the most frequent IRS filing and payment problems taxpayers face and provides practical steps to resolve them.
Problem #1: Missing or Incorrect Information
One of the most common issues is submitting returns with missing or incorrect information. This includes errors in Social Security numbers, misspelled names, or math mistakes. These errors can delay processing your return and any refund you might be expecting.
Solution #1: Use Reliable Tax Software or Professional Help
Tax software can help catch common errors and ensure you're claiming all eligible deductions and credits. For more complex situations, consider hiring a tax professional who can provide personalized guidance.
IRS Free File offers free tax preparation software for eligible taxpayers
Tax professionals can help identify potential issues before filing
Software performs automatic checks for common errors
Problem #2: Underpayment or Late Payment
Not paying enough tax throughout the year or missing payment deadlines can result in penalties and interest. The IRS charges penalties for late payments, and interest compounds daily on unpaid balances, increasing your tax debt over time.
Solution #2: Set Up Electronic Payments
The IRS offers several electronic payment options that can help you avoid late payments and keep track of your tax obligations.
IRS Direct Pay allows fee-free payments directly from your bank account
Electronic Federal Tax Payment System (EFTPS) lets you schedule payments in advance
Payment confirmation provides proof of your transaction
Problem #3: Difficulty Understanding Forms
Tax forms and instructions can be confusing. Many taxpayers struggle to understand which forms they need to file, how to complete them correctly, and what supporting documents to include with their returns.
Solution #3: Organize Your Tax Documents
Keeping your tax documents organized throughout the year makes filing easier and helps ensure you don't miss reporting any income.
Create a dedicated folder for tax documents as they arrive
Use a checklist of expected forms (W-2s, 1099s, etc.)
Keep receipts for deductible expenses organized by category
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Problem #4: Failure to Report All Income
Forgetting to report income from all sources is a common mistake. This includes income from side jobs, freelance work, investments, or rental properties. The IRS receives copies of your income documents (like W-2s and 1099s) and will notice discrepancies.
Solution #4: Double-Check Eligibility for Deductions and Credits
Before claiming deductions or credits, verify that you meet all requirements to avoid potential issues with the IRS.
Review IRS publications specific to each deduction or credit
Keep documentation that proves your eligibility
Consider consulting a tax professional for complex situations
Problem #5: Errors in Claiming Deductions or Credits
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