The document outlines 9 common tax mistakes to avoid. These include failing to declare all types of income, keeping disorganized financial records, mixing personal and business expenses, neglecting to report Form 1099s received, ignoring tax implications of financial timing, claiming unreasonable deductions, forgetting to report foreign income, overlooking ownership of other taxable entities, and disregarding filing status options. Maintaining organized records and consulting a tax professional can help taxpayers avoid these mistakes.

1. 9 TAX MISTAKES TO AVOID

2. Failing to declare income
The IRS has a long list of things it considers income:
wages and salary, but also cancelled debt, prize winnings,
alimony and bartered items are considered taxable
income. The IRS does not consider ignorance of tax law
an excuse for non-payment of taxes, so if you aren’t sure if
something is income, be sure to consult a tax pro.

3. Disorganized Records
Keeping good records is essential for staying out of tax
trouble. Since most audits are by correspondence, you
need to be ready with documents to back up your
claims. If you don’t have the necessary evidence, the
IRS may disallow you expenses, resulting in a tax debt.

4. Mixing Business and Personal
Mixing your business expenses and your personal
expenses, called “co-mingling,” is a BIG No-No as far
as the IRS is concerned. To avoid tax complications
down the road, be sure to keep business and personal
as separate as possible.

5. Missing Forms 1099
Be sure to keep track of every 1099 you receive.
Neglecting to report one on your tax return, will cause
issues with the IRS. Remember, when a 1099 is sent to
you it is also sent to the IRS. The IRS’ information return
matching system will catch the 1099 missing from your

6. Ignoring Timing
Everything in taxes is about timing. Timing can affect
income and deductions. Consider the tax
consequences before postponing the payment of wages
or the sale of major assets.

7. Claiming Wacky Deductions
While it is important to take advantage of the tax
deductions available to you, don’t get overly creative.
The IRS will audit you if they think something is up with
your return. Be sure to consult with a tax professional if
you are unsure about your deductions.

8. Forgetting Foreign Income
This is major. No one get Forms 1099 from foreign
banks. If you have income from abroad, report it. While
income earned abroad may or may not be taxed in the
United States, you still must report it.

9. Overlooking Entities
Whether foreign or domestic, if you own stock in a
company or interests in a partnership, don’t forget about
it at tax time. Those entities file forms and returns that
may impact your return as well.

10. Disregarding Filing Status
Although 95% of married people file jointly, it is not
always in their best interest. Before filing jointly,
consider immigration statuses and past financial issues.

11. For More Details
Visit
www.Taxassistancegroup.Org
or Call
(855) 549-7829
Wood, Robert. “Top 10 Tax Mistakes To Avoid At All Costs.” Forbes. Forbes.com LLC, 1 April 2014. Web. 26 May 2015.
<http://www.forbes.com/sites/robertwood/2014/04/01/top-10-tax-mistakes-to-avoid-at-all-costs/>.