April 15 tax deadline approaches: tips from tax professionals to avoid mistakes while filing

Monday, April 15, is Tax Day in the United States, and the deadline for filing is quickly approaching. For those hurrying to submit their 2023 returns, we spoke with tax specialists about how to avoid simple mistakes and ensure you maximize your refund.

The advantages of electronically filing your tax return

Tom O’Saben, the Director for Tax Content and Government Relations at the National Association of Tax Professionals (NATP), provided specific advice to the minority of filers who plan to submit a paper return.

Simple mistakes like “failure to sign, making simple arithmetic errors, and failing to attach documents such as W2′s are most common,” explained O’Saben. While very basic errors, the impact they could have on delaying one’s refund should not be understated. Additionally, simple mistakes can become more common when one is stressed for time, and with less than a week to submit a return to the IRS, looking for an electronic filing option may help filers avoid making them altogether.

This brings us to O’Saben’s second tip: submit your return electronically, as many of these issues can be resolved. The NATP Director noted that there are plenty of free filing options, and those with an income under $79,000, can file their return for free using one of the IRS Free File options. The IRS has partnered with a handful of companies to develop free filing software, and only a fraction of eligible taxpayers take advantage of the benefit each year.

Additionally, filers living in Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington, and Wyoming can also submit their return using IRS Direct File, which is also a free option that is being piloted in these states this year and will be rolled out nationally next year.

What’s the rush?

This brings us to our third tip. If you cannot dedicate the necessary attention to submitting your return, you can ask for a free extension. The filing deadline will be pushed back to 15 October, but be careful because the extension only applies to the return, not any taxes owed to the IRS by 15 April.

It may be a little late if you are looking to hire a tax professional to help you file your return. “Rather than panic, ask if the professional you want to work with might file an extension on your behalf, which is an extension in time to file but not to pay in case you owe taxes,” advised O’Saben. Tax professionals submit over half of all electronic returns sent to the IRS, and if your return has become increasingly complex, having another pair of eyes could ensure that you receive the highest refund possible, and avoid any mistakes that could lead to penalities or an audit down the road.

Benefits of hiring a tax preparer

Hiring someone a tax professional is not uncommon, but for younger workers who rely on tax preparation software, it may not be an idea that immediately comes to mind. For O’Saben and many tax professionals, contacting a tax preparer you trust and asking if they will submit an extension request may be better than “attempting to squeeze in with a tired and harried preparer by April 15.” Making mistakes on your return can delay receiving your refund, and correcting errors can become a long, drawn-out process.

However, O’Saben did make clear that there are plenty of free options for filing a return, and for those with straightforward tax situations, these options should suffice. Additionally, he noted that the “IRS continues to improve their interactions with taxpayers by introducing FreeFile in limited markets, making more and more information available to address questions, improving phone answering times and providing online tools to resolve problems.” The taxpayer should take advantage of these improvements by the US tax authority, and remember that when filing, the IRS can be a great (and free) resource.