Tax Myths That Could Cost You Big Money

Its crunch time as the tax deadline approaches. April 18 is coming weather you are ready for it or not. Don't fall for any of these tax myths. Here is what you need to know about filing your taxes.

The excuses are flying through your head in an attempt to justify why you are not ready to file your taxes. The days are ticking away and for whatever reason, or lack of a reason, your 2010 records are still scattered every where. Don't make the mistake of trying to get out of filing by falling for one of these untruths.

I don't have to pay taxes: Oh yes you do. Everyone has to file a return. Any just because you file an extension doesn't make it a for sure deal. The IRS can decline your request. If you file an extension and you wind up owing taxes, you had better send in some money by April 18.

My accountant is liable for mistakes: You are responsible for your tax return. Your name is on the signature line. Even though they may have made a mistake, you, the tax-payer, are responsible. My (now ex) tax-preparer made a mistake that came back to haunt me 3 years later and I had to pay up, plus penalties!

I don't have any business expenses: If you have a job, you probably have some sort of business expenses that you can claim. Ask yourself what things you're paying for in order to maintain employment. Uniforms, cleaning expenses or equipment that you have to purchase to do your job may be deductible.

All of my home costs are tax deductible: You better check with a professional before you try to deduct home improvement or maintenance expenses. This could be a red flag that gets your name thrown in the audit hat.

Only the rich get audited: Not true. The IRS is actually hiring more auditors as we speak. I've been audited. I know many others that have been audited too. My advice: Keep your receipts, don't stretch the truth and hire a good CPA firm.