Tax Advice for 2024: Do not File Incomplete Tax Returns

Tax Advice for 2024: Do not File Incomplete Tax Returns. Whenever tax season approaches tax filer is busy in collecting and discussing his tax returns working with tax consultant and on the other side tax consultant is facing lot of rush of work especially when tax deadlines are near. At the same time it is very necessary for both tax filers and tax consultants to use maximum care in providing information and in preparation of tax working papers.

It is extremely beneficial for taxpayer to take personal interest in finalizing the workings and check for any errors, mistakes or omission of any information necessary to declare in tax returns. It is also the duty of tax consultant to use his professional experience to avoid any errors and wrong declarations of financial information in tax returns.

It is important for taxpayer because in this way he can avoid penalty or imposition of tax due to wrong declaration of financial information in tax returns. That’s why taxpayer and tax consultant must need to know before filing tax return that tax return is complete.

Why Incomplete Filing of Tax Return is Full of Risks?

We are here to explain you the risks involved in filing wrong and incomplete tax returns. Sometime taxpayer does not provide complete information and tax consultant is unable to declare it properly. But it is also a fact which tax professional can better understand that if tax consultant use his professional knowledge and experience and perform his work according to tax laws of the country then he is able to locate mistakes or incomplete or non provision of information from taxpayer side.

Non disclosure of immovable property, vehicles, investments, tax payments, income, and incomplete declaration of bank transactions incurred during the period of filing tax return are common mistakes in filing tax returns. These mistakes or incomplete filing of tax return is sometimes intentional and sometimes taxpayer has little knowledge or take less interest in filing all such information in tax returns.

So, if any discrepancies are found by the tax authorities after filing of tax returns then taxpayer may face assessment and audit proceedings. It is very time consuming and full of stress and in maximum cases ends in charge of additional taxes and penalties from tax authority.

What are the tips for Filing a Complete Tax Return?

Following are some important guidelines which we can follow in preparation of tax working papers and can avoid incomplete tax filings!

• Collect all Necessary Documents: Tax Consultant should inform to taxpayer to provide all necessary documents and evidences. For this purpose he should provide a complete list of documents required to taxpayer.
• Tax Consultant must be aware all tax laws & changes: For accurate and risk free filing of tax return a tax consultant must be knowledgeable about tax laws of the country and also changes in tax laws.
• Proper Review of Tax Working Papers: Tax Consultant must review the tax working papers properly (Like: bank analysis, books of accounts, financials, tax computations, data entry on iris portal etc.).
• Professional Staff. Staff involved in preparation of working should be qualified and experienced and have complete knowledge of tax laws of the country.
• Do not Be Hurry: Timely preparation of working and then proper review and discussion with taxpayer is very important in accurate filing of tax returns.
• Taxpayer should Review and do not hide any information: It is in the extreme interest of the taxpayer that he should involve himself in finalization of tax workings. Furthermore, taxpayer intentionally or unintentionally should not skip any information which is necessary to provide in preparation of tax workings.
• Timely filing of Tax Returns by Taxpayer: Taxpayer should not delay in filing tax returns and should provide all data and information to tax consultant on timely basis. Because when taxpayer will provide data on time then tax consultant can process it on time.

Conclusion:

Taxpayer should provide the data on time which tax consultant can process without any delay. It will in great interest of taxpayer because in this way he can avoid unnecessary assessments and audits. He can avoid penalties and additional taxes due to incomplete and wrong filing of tax return. Tax Consultant should also perform his work professionally and complete and submit the working after proper review.