Fear of an Audit
Fear is one of the Internal Revenue Service’s best weapons.
The threat of an audit is usually enough to send fear into the hearts of most people. βWith audits, youβre assumed guilty until proven otherwise,β says a spokesman in this article.
This fear, plus the mind-boggling complexity of the tax forms, causes many people to overpay their taxes. The most common way to overpay is due to failure of tax filers to take legitimate deductions to which they are entitled. A government study found that people overpay an average of $438 a year.
The deductions most often missed by taxpayers–even when they are entitled to them–are mortgage interest, personal property tax and state and local income taxes.
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Tags: legitimate deductions, mortgage interest, overpay their taxes, personal property tax
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