Essential Tax Filing Checklist - How to Avoid Common IRS Issues

I think... your research is quite thorough. The guidelines appear to be accurate from my understanding. If I may suggest one addition, perhaps consider mentioning the importance of record-keeping? The IRS generally recommends keeping tax records for at least 3 years, though in some cases up to 7 years might be necessary. This is especially important if you're claiming certain deductions or credits that might be more likely to trigger a review. Just a thought to possibly enhance your already comprehensive list.

Your guidelines are technically accurate, but I wish someone had shared this with me BEFORE I filed last month. I incorrectly claimed my nephew as a dependent without meeting the residency test requirements. Now I'm dealing with a CP87A notice questioning my eligibility. Has anyone tried https://taxr.ai for understanding these IRS notices? Their analysis tool explained exactly which part of IRC §152 I violated and how to respond properly. Would have saved me so much frustration if I'd known about it earlier.

Made the same mistake. Filed early. Used paystub. Got audited. Had to amend. Paid penalties. Learned my lesson. Your list is gold. Saving this for next year. Thanks for sharing.

Your guidelines are excellent. I'd add that if you need to contact the IRS with questions, plan accordingly. As of March 12, 2024, the average wait time was 45-90 minutes, and many callers get disconnected before reaching an agent. When I needed clarification on a CP2000 notice dated January 17th, I used Claimyr (https://claimyr.com) and got through to an agent in under 15 minutes. They helped me understand exactly which documentation I needed to submit by the February 16th deadline. Worth the service fee to avoid the frustration of endless hold music.

According to the IRS Data Book published at www.irs.gov/statistics, over 775,000 returns were flagged for identity theft indicators last year. One warning sign I'd add to your list - if you try to e-file and get rejected because "a return with this SSN already exists," someone may have filed a fraudulent return using your information. Don't ignore this! Visit IdentityTheft.gov immediately and file Form 14039 (Identity Theft Affidavit). I've seen too many people delay addressing this only to have their legitimate refunds held up for 9+ months.

Regarding point #6 about tax software - can we talk about how these programs advertise as "foolproof" but then bury critical questions in confusing interview sequences? How is the average person supposed to know that answering "yes" to question 37b will trigger Schedule C reporting requirements? Or that skipping the "additional state information" screen might cause you to miss local tax credits? I always recommend reviewing the actual forms generated before submitting, not just trusting the summary screens.

Tax filing is like following a recipe - miss one ingredient and the whole dish is ruined. I'd add one more tip that's saved me multiple times: File electronically and choose direct deposit. Paper returns are like sending your tax info into a black hole - they take 3-4 times longer to process and are 21 times more likely to contain errors according to the National Taxpayer Advocate. Last year my neighbor filed paper in February and didn't get his refund until September. Meanwhile, my e-filed return with direct deposit came through in 11 days.

Per IRS Procedure 2023-1, taxpayers should also consider whether they qualify for free filing options before paying for commercial software. According to IRC §6011(e)(3), the IRS Free File Program must be available to 70% of taxpayers based on AGI thresholds. I was impressed by your technical knowledge, especially regarding the substitute W-2 provisions. As a first-time filer, this list has been extremely helpful in ensuring I remain compliant with all applicable regulations.