Newsbreak: The Hidden Dangers of Holding Back Information from Your Tax Accountant and How to Avoid Them.

If you are using a tax accountant to prepare your tax return, it is important to share all necessary information to ensure you get the maximum refund you are entitled to. Holding back information from your accountant can result in serious consequences, depending on the secret. According to a report by GOBankingRates on February 29, 2023, some of the secrets that should be shared with your accountant include: failing to file taxes in prior years; being involved in a personal injury lawsuit; changing marital status; paying personal expenses with business funds; and having overseas bank accounts or other assets.

Failure to file taxes can lead to increased penalties and interest, so it is essential to file past returns. If you were involved in a personal injury lawsuit and received money for lost wages, you owe taxes on the funds. Changes in marital status can affect your tax returns, and failing to disclose accurate information could lead to missed financial aid opportunities. Paying personal expenses with business funds is not tax deductible and can lead to audit flags with the IRS, resulting in significant tax liabilities.

Lastly, if you have overseas bank accounts or other assets, it is crucial to report them to the IRS to avoid paying extra fines or penalties and potentially facing criminal charges. By sharing all necessary information with your accountant, you can ensure that your tax returns are prepared correctly and that you are not at risk of facing any penalties or fines.