In an on-line survey individuals listed these items as their biggest tax mistakes / tax blunders

1. Debt forgiven? It should be Report it as income.  With our current economy, Americans are renegotiating credit card debt at record numbers but many don't discover until later that canceled debt from credit cards is income. Credit card companies report forgiven debt to the IRS on Form 1099C . Things get complicated with mortgage debt, and you should talk with a tax expert (Enrolled Agent) if you have restructured your home loan.

 2. Report all your jobs.  Several in the survey admitted that they've forgotten to include all sources of income. One person said she neglected to include her husband's $27,000-a-year job and was fined $3,400. "I think this is just about as stupid as one can get!" she wrote.

 3. Get your taxes return completed for Free? Don't get scammed.  If it sounds too good to be true, it probably is. Unlicensed tax preparers and Software companies that promise to do your tax return for “FREE” is about as big of scam as you can get.  H&R Block advertised they would do your 1040EZ for free but failed in their advertisement to tell you they would charge a very large free to prepare your state tax forms.  IRS are have criminal investigations on-going on several other similar scam where they have used your identy for fraud activity.

 4. Don't be afraid to second-guess your tax preparer.  If your unlicensed tax preparer's advice contradicts your past experience, get a second opinion from licensed tax preparer (an Enrolled Agent) "I listened to my unlicensed tax preparer and paid $25,000 in fines”, the reader said, "I should have checked with someone else." Another person on the survey, who owns rental properties, missed out on deducting mileage for visiting the properties, as well as the cost of tools he used for repairs. He said he had his doubts, but he was in a rush, so he stuck with the advice of his unlicensed tax preparer.

 5. If your taxes get complicated, consult a licensed tax preparer (Enrolled Agent).   Many in the survey said they should have hired a licensed (Enrolled Agent) tax professional.

 6. Who is ultimately responsible?  Ultimately, you are the one responsible for the accuracy of your income tax return. But a good Licensed (Enrolled Agent) Tax Preparer can save you time, money and headaches by fixing often silly and sometimes costly mistakes.