Tax season is almost upon us, and income tax fraud is a very serious crime that can come with significant punishments, including fines and imprisonment. To ensure you are not charged with income tax fraud after filing your taxes, there are several tips you should follow. The staff at ADS Guards, the best security company in Hayward, discuss a few of these crucial tips.
Organize Prior to Filing
Though it may seem easier to prepare your taxes as soon as you receive your tax documents, it would be wise to ensure you have all the documentation you need ahead of time. Be sure to spend a few hours reviewing the documents you have received from employers, banks, and other sources. It would also be a good idea to keep a written record and checklist of your documents to ensure they are incorporated into the tax return.
Include All Income
Regardless of whether you received a W2 or not, you are obligated to report all income that was earned during the year. Your income should include all wages, interest income, investment income, and miscellaneous income, even if it is paid in cash.
Have Taxes Reviewed
A tax preparer or auditor will ensure you are recording all income and deductions appropriately and are in compliance with the IRS’s guidelines. Having a professional tax preparer or auditor review your taxes can help reduce the risk of mistakes being made on the filed return.
You should keep copies of all tax returns, W2s, bank statements, tax deduction and credit evidence, and other tax documents for at least 7 years. This ensures you are properly organized and prepared if you have to be audited. Make sure to keep your hard copies, and it would be a good idea to make an electronic backup copy of all your records as well.
For additional tips on preventing income tax fraud, get in touch with ADS Guards, a leading provider of armed and unarmed security guards. Hayward residents and business owners can trust in our high-quality security services. Call 1-800-794-1550 to speak with one of our representatives and receive a free quote.