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Choosing the wrong filing status. Taxpayers should confirm that the filing status (i.e.,
single, married filing jointly, married filing separately, head of household, qualifying widower) selected on the
return is correct. For example, taxpayers often incorrectly claim "head of household" filing status
without meeting the requirements for that status. In addition to delaying the processing of the return and any
refund, designating the wrong filing status on a return also may affect a taxpayer’s eligibility for the Earned
Income Credit.
Failing to include or using incorrect social security numbers. The names and social security
numbers for the taxpayer, taxpayer’s spouse, dependents, and qualifying children for the Earned Income Credit or
Child Tax Credit must be included on the return exactly as they appear on the social security cards. Please note
that if you change your name, such as when getting married, the Social Security Administration must be notified.
Failing to use the correct forms and schedules. Taxpayers should review the instructions to
all applicable forms and schedules to be sure they have correctly used, and accurately completed, each form or
schedule.
Failing to sign and date the return. Taxpayers must sign and date their return. If the return
is not signed, it will not be accepted as filed by the Service. Both spouses must sign a joint return.
Claiming ineligible dependents. Taxpayers may claim a person as a dependent only if that
person meets the legal definition of a dependent. Each dependent must have a valid social security number,
which must be included on the tax return. The failure to include a dependent’s name and social security number,
or claiming an ineligible dependent, may result in an underpayment of tax and/or a denial of the Earned Income
Credit.
Failing to file for the Earned Income Credit. Taxpayers should review carefully the eligibility
requirements for the Earned Income Credit, including income limits, before filing returns. For example, many
military families may qualify for the Earned Income Credit because supplemental payments and combat pay are
exempt from the income calculations.
Improperly claiming the Earned Income Credit. Taxpayers must have a qualifying amount of
earned income to claim the Earned Income Credit. For example, a taxpayer whose sole income is from the receipt of
disability payments does not have qualifying earned income and is ineligible for the Earned Income Credit.
Failing to pay and report domestic payroll taxes. Taxpayers employing household workers, such
as a house cleaner, an in-home caregiver, or a nanny, must pay and report payroll taxes for those individuals
where the payments exceed certain threshold amounts. Failure to pay and report payroll taxes may result in the
assessment of additional tax due, interest on the unpaid amounts, and penalties.
Failing to report income because it was not included on a Form W-2, Form 1099 or other
information return. Taxpayers must report all income, even if the income was not reported on a third-party
reporting statement such as a Form W-2, Form 1099, or other similar statement. Failure to report all income may
result in the assessment of additional tax due, interest on the unpaid amounts, and penalties.
Treating employees as independent contractors. Employers may not treat an employee as an
"independent contractor" to avoid paying and reporting payroll taxes. Employers who improperly treat
an employee as an independent contractor may be liable for additional tax due, interest on the unpaid amounts,
and penalties.
Failing to file a return when due a refund. Taxpayers must file a return to claim a refund of
withheld taxes when a refund is due. Taxpayers will forfeit refunds of withheld tax if a return requesting a
refund is not filed within three years of the due date.
Failing to check liability for the alternative minimum tax. Taxpayers should determine whether
the alternative minimum tax, or AMT, applies. If the taxpayer is liable for AMT, the Service may reduce or deny a
requested refund or may assess any additional tax due, interest on the unpaid amounts and penalties.
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