Taxes are due April 15th. Although many people have worried about receiving reduced tax refunds this year, data actually shows the average taxpayer has gotten more. The average refund check so far is $3,068, which is a 0.7 percent increase from last year.
If you still have not filed your taxes yet, then it is vital you get on it right away. As you fill out the paperwork, make sure you do not inadvertently commit tax fraud. Tax fraud, even if it was an accident, is a serious crime, and it is paramount for everyone to familiarize themselves with the different types that can manifest.
Claiming unqualified deductions
There are numerous deductions and credits people and businesses can qualify for. However, you need to be absolutely certain you actually qualify before taking them. Claiming unqualified deductions is a felony offense, and a conviction can result in serious jail time. Tax auditors often look for unqualified deductions. It is easy to spot fraudulent activity, so it is vital to have a financial professional look at your documents to ensure you are on the right side of the law.
Using false numbers
You need to use the exact numbers you qualified for on your tax forms. You should never guess or intentionally use fake numbers. You should get all the proper paperwork from your employees. As long as you do the math correctly, you should have all the right numbers. You can have someone else look at your forms to ensure you performed all calculations properly.
Underreporting income
For some professionals, it is easy to claim they made less money than they actually did. This is particularly common with restaurant workers and other employees who rely heavily on tips. You also need to report any income you made while gambling. Although it can be difficult to keep track of cash earnings, it is important to do so.
