Don't risk a tax audit. Here are four reasons the IRS may flag your return

Don't risk a tax audit. Here are four reasons the IRS may flag your return  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  VIEW IN BROWSER | SUBSCRIBE WED, FEB 08, 2023 YOUR WEALTH Editor's Note It's tax time and that translates to raised stress levels for many people. Just thinking about preparing taxes can give some folks a headache. It's not only the concern over how much of your hard-earned money goes to taxes, but the stress over the actual filing process that gets to many of us. The key is to be prepared going into tax season and avoid making any bonehead moves when getting ready to file your tax return. What do I mean by bonehead moves? Here goes: not filing a return on time; trying to hide or under-reporting your income; reporting false tax information (for example, making up false deductions for charities and business expenses); not saving all tax records or receipts; entering incorrect information on the tax forms; claiming a dependent (for example, one born during the tax year) without adding a Social Security number; waiting until the very last minute to file; not getting your refund the fastest way; and immediately spending a tax refund. With that said, here's some advice from tax professionals who say these tips will help tax filers: Don't procrastinate. Resist the temptation to put off dealing with your taxes until the very last minute. "Don't be stupid by omitting income," one CPA said. File an accurate return. Inaccuracies in your return can trigger an IRS audit. Check on new rules on credits and deductions. If you can't get your tax information together by the April 18 deadline, you can file an extension to automatically move your deadline to Oct. 16. But don't wait to pay the taxes you owe: The IRS expects you to make a good faith estimate if you want to avoid penalties and interest. File for free. Most Americans can file their taxes for free — but many don't seize the opportunity. Watch for tax scams. According to the Better Business Bureau, tax season is a popular time of year for scammers looking to target Americans through emails, phone calls and text messages. They often pose as IRS agents asking for personal information or demanding payment. The real IRS primarily contacts taxpayers through snail mail and will not text, call or email. For more advice to help you make smart financial decisions, check out CNBC's Financial Advisor Hub and Personal Finance section. Also, join the PF team's weekly Twitter Space, "This Week, Your Wallet," each Friday at 11 a.m. ET. Click here for a recording of last week's episode. Jim Pavia Senior Editor, Personal Finance @JIMPAVIA Don't risk a tax audit. Here are four reasons the IRS may flag your return While the odds of an audit have been low, your return may get flagged for several reasons, tax experts say. Here's what filers need to know. Roughly 70% of taxpayers are eligible for IRS Free File, but only 2% used it in 2022 Roughly 70% of Americans qualify for IRS Free File, but only 2% of taxpayers used it in 2022. Here's what to know to file your federal return for free. How to protect yourself from tax fraud and scams, according to cybersecurity experts Fraud costs Americans billions of dollars each year, and tax season is a time when phone, email and text scams, including IRS agent impersonation, all rise. Roth IRA 'five-year rule' can trigger an unexpected tax bill: Here's what you need to know Roth IRAs can be a powerful way to save money since withdrawals are generally tax-free in retirement. But a "five-year rule" could trigger a tax bill later. When it makes sense to buy extra paper Series I bonds with your tax refund, according to experts You can buy an extra $5,000 in paper Series I bonds with your tax refund, but experts say to consider your goals and weigh alternatives. Wait until age 70 to claim Social Security: 'The return on being patient is huge,' says economist Retirement benefits taken at age 70 are 76% higher, adjusted for inflation, than retirement benefits taken at 62, research finds. 35% of millionaires say retirement is 'going to take a miracle,' report finds Fewer Americans, including millionaires, feel confident about their overall financial well-being. Before you enroll in Medicare, what to know about new rules that eliminate coverage gaps Legislation passed in 2020 eliminates the coverage delays that some beneficiaries have faced when they enrolled in Medicare, effective this year. The current job market is a 'juggernaut,' economist says. Here are 6 things to know as a job seeker Job and wage growth are strong, layoffs are low and workers are quitting at high rates. Here's what to know about a trove of labor data issued this week. Auto loan delinquencies are rising. Here's what to do if you're struggling with payments If you are falling behind on auto loan payments, experts say there are some things you can do to prevent the problem from snowballing. CONTRIBUTORS Sharon Epperson @sharon_epperson Josh Brown @ReformedBroker Unsubscribe Manage Newsletters Terms of Service Join the CNBC Panel   Digital Products Feedback Privacy Policy CNBC Events   © 2023 CNBC LLC. All rights reserved. A property of NBCUniversal. 900 Sylvan Avenue, Englewood Cliffs, NJ 07632 Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes and Market Data and Analysis. Data also provided by THOMSON REUTERS

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