IRS Provides Last-Minute Tips for Avoiding Filing Errors

Even minor errors on federal tax returns can prove costly. From math mistakes to forgetting to sign your return, all types of errors can trigger scrutiny from the IRS, and this scrutiny can potentially uncover other errors as well. When facing IRS scrutiny, hiring an experienced Boston tax attorney is essential for avoiding unnecessary consequences.

5 Tips for Avoiding Filing Errors (and IRS Scrutiny) in 2025

The IRS recently provided some last-minute tips for avoiding filing errors in 2025. Here are some insights on these tips from Boston tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group:

1. Report All Taxable Income from All Sources

As the IRS makes clear, “[m]ost income is subject to taxation... [and f]ailing to accurately report income may result in interest and penalties.” U.S. taxpayers must report their worldwide income from all sources—including employment, self-employment, independent contracting (gig work) and investments, among others. In many cases, taxpayers fail to report income because they haven’t received a W-2 or Form 1099 from a third party. However, the IRS also makes clear that this is not an excuse for noncompliance.

2. Avoid Simple Mistakes that Can Raise Red Flags

The IRS’ last-minute tips address several simple mistakes that can raise red flags (and potentially lead to further scrutiny). Claiming the wrong filing status, misstating your birth date or Social Security number, and failing to sign or date your return are all easily avoidable mistakes that have the potential to lead to an IRS audit.

3. Accurately Answer the “Digital Assets Question”

The IRS added the “digital asset question” to Form 1040 in 2023. This question asks whether you received or sold any digital assets (including cryptocurrency) during the tax year. While the IRS provides a tool for determining how to answer the digital assets question, it also makes clear that taxpayers cannot rely on this tool exclusively when determining their federal filing obligations.

Financial institutions, brokerages, exchanges, and other third parties are required to disclose their customers’ and clients’ holdings to the IRS as well. As a result, if you incorrectly answer the digital assets question, the IRS may know.

4. Rely on Technology (or Professional Advice) to Avoid Math Mistakes

The IRS recommends using electronic filing tools, which can “decrease[] mathematical errors” and help taxpayers avoid other common mistakes. In some cases, however, taxpayers will need to seek professional advice in order to accurately prepare their returns.

5. Request an Extension if Necessary

Finally, since interest and penalties begin accruing immediately, the IRS recommends requesting an extension if necessary. Submitting a valid and timely extension request can help taxpayers avoid penalties (though generally not interest), and it can help taxpayers avoid triggering IRS scrutiny as well.

Questions or Concerns? Contact Boston Tax Attorney Kevin E. Thorn

Do you have questions or concerns about what you need to disclose (or what you have already disclosed) to the IRS? If so, we invite you to get in touch. Call 617-692-2989 or contact us online to request a confidential consultation with Boston tax attorney Kevin E. Thorn, Managing Partner of Thorn Law Group.