Top 3 Mistakes Tax Preparers Should Avoid at All Costs

Tax mistakes can be incredibly difficult to deal with. At the client’s end, making mistakes on a tax return can cost them money. They could miss out on larger refund claims, thereby causing them to own more taxes. In worse case scenarios, they could end up accumulating penalties and interest.

As a tax preparer, however, such mistakes can cause a serious dent to your credibility and therefore, the course of your career. Bear in mind that tax mistakes can easily invite an Internal Revenue Service (IRS) audit, which is a terrifying sign for any business, including your firm.

The question now stands: what is your best defense against these crippling scenarios? The answer is simple—avoid the errors. As a tax preparer, here are three of the most common tax filing mistakes and what you can do to avoid them:

  1. Mistake #1: Using incorrect bank account numbers According to the IRS, direct deposit is the fastest and easiest way to get a refund. While indeed convenient, it’s easy to get bank account numbers wrong. To ensure that your client successfully receives the refund, the routing numbers must be correct, down to the last digits.Tracking down a refund sent to the wrong account can be difficult, if not impossible, to do. To make sure that all digits are correct, ask your clients to use a direct deposit slip. For further assurance, always double-check their details.
  2. Mistake #2: Failing to have the forms signedSignatures are non-negotiable when it comes to documents. As a tax preparer, you understand the importance of signatures. Any unsigned tax return is never valid, so make sure to check each form. Ask your clients to electronically sign their forms if they cannot be present during filing, just to ensure that documents will be signed before filing.
  3. Mistake #3: Erroneously performing tax credits or deductionsThe number of deductions and credits available to taxpayers can be overwhelming, even for the professional tax preparer. Tax season can be incredibly stressful, especially when juggling multiple client files at once and trying to beat deadlines.You may end up computing credit or deductions that appear appropriate but must have been phased out due to the client’s income and other restrictions. It’s vital to double check documents and information with clients, no matter how tedious it may be. This can save you from tax fiascos, ensuring that your image stays credible and reliable.

Enlist the Help of a Professional Tax Preparation Software

Although taxation is something you deal with regularly, understand that mistakes can happen. That said, remember to keep checking your work. Most mistakes can be caught by double-checking your math processes, signatures, and attached forms. It’s important to learn how to slow down and take a few moments to check your work.

By doing so, you not only satisfy your clients, but further your firm’s growth. While the stress can quickly take over once mistakes are spotted, remember one crucial fact—mistakes can always be fixed! Also asking for a little bit of help is never a crime. 

Even the best need help, so why not enlist the help of the best professional tax software in the USA? Keystone Tax Solutions offers you an award-winning platform to help streamline your processes, ensuring that your work remains completely error-free. With over 15 years of experience, we’re a leader in the tax industry and our software has helped countless tax preparers from all over the United States.

Get the most for your firm this upcoming tax season—choose Keystone Tax Solutions!

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