Sponsor spotlight Tax return information thats easy to miss

Tax returns frequently encounter delays due to several commonly overlooked items, leading to potential audits by the IRS. Missing forms, such as W-2s and 1099s, can create significant issues, emphasizing the need for taxpayers to verify all documentation received. Dependent information must be accurately reported, particularly for newly added dependents or those with shared custody arrangements. Additionally, taxpayers must ensure they have the correct cost basis information for any sold assets, crucial for calculating taxable gains or losses. Owners of partnerships and S corporations should pay close attention to their Schedule K-1s for information related to the Qualified Business Income Deduction.

For those dealing with digital assets, detailed records of transactions are essential to support claims of cost basis and sales prices. Missing signatures on e-file approval forms can further delay the filing process. By addressing these common pitfalls, taxpayers can streamline their tax filing experience.