We all Make Mistakes - Even the Government

The federal telephone excise tax was a federal tax imposed on anyone paying for communications services in the U.S. However, on May 10, 2005 the American Bankers Insurance Group won a lawsuit against the federal government because of this tax. The lawsuit resulted in a telephone tax refund that was available to taxpayers last tax filing season.

Although the IRS made a big mistake by levying a tax on communication services, taxpayers commonly make the following 10 mistakes every tax season.

1. Math Errors

Always double and triple check the math on your tax return. The IRS will correct some simple math errors, but you should ensure everything is accurate before mailing your return.

2. Sign and Date Your Return

This may seem obvious, but make sure you sign and date at all the appropriate places on both your federal and state tax returns.

3. Attach Forms

Do not forget to attach all copy Bs of your W-2 or any 1099 forms showing federal income tax withheld.

4. Social Security Number

Always make sure you have the correct social security number or individual taxpayer identification number listed on all appropriate documents. The IRS will have no way to identify you if you put down the wrong number.

5. Check Subject

If you owe money to the government and are paying with a check, make sure that you include your social security number, tax form, and the tax year in the subject field.

6. Verify Check Amount

Always verify that the amount on your check to the government matches the amount listed on your tax return. Even if your are a few dollars off the IRS will still come after you for what they are owed.

7. List all Dependents

Check to make sure that you list all dependents on your return, including qualifying children, elderly parents, etc.

8. File Form 8606

If you contribute to an IRA account then you should fill out Form 8606 “Nondeductible IRA Contributions” even if you do not claim any deductions for your contributions.

9. Save Copies

You should always save copies of all documents that you send to the federal or state government. You never know when you are going to need proof that you filed your returns.

10. File on Time

Almost every single American taxpayer knows that April 15 is the deadline to file your income tax returns, so there is no excuse to be late!