Filing your taxes shouldn’t feel like a gamble—but for many Florida residents, it does. With no state income tax and a wide range of income sources (W-2 jobs, self-employment, real estate, investments), it’s easy to miss deductions, underreport income, or make choices that trigger IRS penalties.
At Polaris Tax & Accounting, we’ve seen it all—and we’ve helped clients fix it. In this article, we’re breaking down the top five tax mistakes Florida taxpayers make, and showing you how working with a licensed Enrolled Agent (EA) can not only resolve those issues, but prevent them going forward.
Mistake #1: Missing Estimated Payments When You’re Self-Employed
🔍 The Problem:
Florida is full of freelancers, consultants, and business owners who receive 1099 income—but forget (or avoid) making estimated tax payments. The IRS doesn’t like to wait for its cut.
Failing to make quarterly estimated payments can result in:
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Underpayment penalties
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Surprise tax bills in April
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Cash flow disruptions
✅ The EA Solution:
An EA helps you calculate the right quarterly amounts based on your income trends and deductions. At Polaris, we also help clients set up simple systems to automate payments and avoid penalties year-round.
Mistake #2: Reporting Rental Income Incorrectly
🔍 The Problem:
With Florida’s hot real estate market, many people rent out property—sometimes casually, like Airbnb or short-term vacation homes. Unfortunately, many taxpayers:
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Skip depreciation deductions
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Fail to allocate personal vs. business use
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Underreport or misclassify expenses
These mistakes can trigger audits or result in significant overpayment.
✅ The EA Solution:
An Enrolled Agent understands IRS Schedule E reporting rules and will ensure your property is classified correctly, depreciated properly, and expenses are maximized legally. If you’ve missed prior-year deductions, we can often amend returns to claim what you’re owed.
Mistake #3: Assuming Tax Software Catches Everything
🔍 The Problem:
Many taxpayers rely on DIY software to file their returns, assuming the software is “smart” enough to optimize deductions and credits. But software doesn’t ask the right questions—and it doesn’t think strategically.
We’ve seen clients overpay by thousands because they:
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Missed retirement contribution opportunities
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Failed to group charitable deductions
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Chose the wrong filing status
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Didn’t claim legal business deductions
✅ The EA Solution:
A licensed EA brings human insight to your tax planning. At Polaris, we combine real-world experience with software to find and implement tax-saving strategies tailored to your situation.
Mistake #4: Ignoring IRS Notices (or Panicking and Overpaying)
🔍 The Problem:
If you’ve received a CP2000, CP504, or other IRS notice, you’re not alone. Many Florida taxpayers ignore them—or worse, pay them without understanding the issue.
This can lead to:
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Paying more than you owe
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Missing appeal windows
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More aggressive enforcement later
✅ The EA Solution:
As federally licensed representatives, EAs can handle IRS notices on your behalf. We review every notice carefully, respond to the IRS directly, and protect your rights. Often, we reduce or eliminate the proposed balance entirely.
👉 Need help now? Schedule a consultation with Polaris
Mistake #5: Treating Tax Season Like a One-Time Event
🔍 The Problem:
For many people, taxes are something they deal with in March or April—then forget until next year. That leads to:
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Missed planning opportunities
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Poor recordkeeping
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High tax liability with no warning
✅ The EA Solution:
At Polaris, our Enrolled Agents work with clients year-round to minimize surprises. We offer tax projections, planning sessions, and entity strategy to reduce your future liability—not just plug numbers into a form once a year.
Related Resources
✔️ What Is an Enrolled Agent? Understanding the Role, Benefits, and How They Compare to CPAs
✔️ Florida IRS Tax Problems? Why an Enrolled Agent May Be the Best Professional to Help
✔️ EA vs. CPA vs. Tax Preparer — Who Should You Trust with Your Taxes in Florida?
✔️ Florida Enrolled Agent Tax Help
Final Thoughts: Mistakes Happen—But They’re Fixable
At Polaris, we don’t judge. We fix. Whether you’ve made one of the mistakes above or just want to ensure your next return is accurate and optimized, we’re here to help.
With licensed Enrolled Agents on staff, we offer:
✅ IRS representation
✅ Tax resolution and back-filing
✅ Proactive planning for individuals and business owners
✅ Florida-based support with national authority