IR-2024-74 March 18, 2024, WASHINGTON – – As the April 15 filing deadline approaches, the Internal Revenue Service released a suggestion to taxpayers on ways to prevent common errors on their federal tax returns to assist speed possible refunds.

Gather all tax-related documentation

Taxpayers ought to gather all essential files, including Forms W-2 and 1099, along with any supporting paperwork for tax reductions or credits such as instructional credits or home mortgage interest payments. In addition, having the previous year's tax return available is advisable as it might be needed.

Use electronic filing

The IRS advises taxpayers and their tax consultants use electronic filing techniques such as IRS Free File or alternative e-file service providers. The Direct File pilot is offered for some taxpayers in 12 states. Electronic filing minimizes mathematical errors and recognizes possible tax credits or deductions for which the taxpayer certifies.

It's essential for taxpayers to thoroughly review their income tax return to ensure accuracy. Going with electronic filing and choosing direct deposit is the fastest and most safe method to get a refund.

Guarantee filing status is right

Tax software serves to prevent mistakes in choosing an income tax return filing status. For taxpayers uncertain of their filing status, the Interactive Tax Assistant on IRS.gov can help in picking the right status, especially when numerous statuses may apply.

Make sure names, birthdates and Social Security numbers are appropriate

Taxpayers must accurately supply the name, date of birth and Social Security number for each reliant noted on their private income tax return. The SSN and person's name need to be gotten in precisely as suggested on the Social Security card.

In cases where a reliant or spouse lacks a SSN and is ineligible to acquire one, an appointed Individual Tax Identification Number (ITIN) need to be noted rather of a SSN.

Address the digital assets question

Everybody who files Forms 1040, 1040-SR, 1040-NR, 1041, 1065, 1120 and 1120S needs to check one box answering either "Yes" or "No" to the digital asset concern. The concern must be answered by all taxpayers, not just by those who engaged in a transaction including digital assets in 2023. Taxpayers should report all earnings associated with digital possession transactions.

See IRS.gov Digital Assets|Internal Revenue Service for details on when to check "yes" and how to report the income

Report all gross income.

A lot of income is subject to taxation. Stopping working to precisely report earnings may result in accumulated interest and penalties. This includes numerous income sources such as interest incomes, unemployment benefits and earnings stemmed from the service industry, gig economy and digital possessions. For more information, speak with Publication 525, Taxable and Nontaxable Income.

Make sure banking routing and account numbers are correct

Taxpayers have the alternative to demand direct deposit of a federal refund into one, two or even 3 accounts. Supply proper banking info: If anticipating a refund, make sure the routing and account numbers provided for direct deposit are accurate to prevent delays or misdirected refunds.

In addition, taxpayers can use their refund to buy U.S. Savings Bonds.

Keep in mind to date the return and sign

When sending a joint return, it is needed for both partners to sign and date the return. If taxpayers are preparing their taxes separately and filing digitally, they require to sign and authenticate their electronic tax return by inputting their adjusted gross income (AGI) from the prior year. Taxpayers can refer to "Validating Your Electronically Filed Tax Return" for assistance if they have any queries

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If mailing paper returns, guarantee address is appropriate.

Taxpayers and tax specialists are advised to choose electronic filing whenever possible. For those who should submit a paper tax return, it's vital to verify the precise mailing address either on IRS.gov or in the instructions supplied with Form 1040 to prevent processing delays.

Keep a copy of the income tax return.

Upon preparedness to file, taxpayers must produce duplicates of their signed return and any accompanying schedules for their personal records. Keeping copies can assist them prepare future tax returns and figure mathematical calculations in case of filing an amended return. Usually, taxpayers must retain records supporting income, credits or deductions claimed on their tax return until the duration of constraints for that specific income tax return ends.

Ask for an extension, if needed.

Taxpayers needing more time to file their taxes can quickly request a six-month extension up until October 15, thus avoiding late filing charges. This extension can be requested either through IRS Free File or by sending Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, by April 15. It's crucial to note that while an extension supplies extra time for filing, tax payments are still due on April 15 for many taxpayers.

Alternatively, taxpayers can seek an extension by making a full or partial payment of their estimated income tax and suggesting that the payment is for an extension. This can be done utilizing Direct Pay, the Electronic Federal Tax Payment System (EFTPS), or a debit/credit card or digital wallet. By doing so, taxpayers prevent the requirement of filing a separate extension form and get a verification number for their records.