When it comes to taxes, there are several common mistakes that individuals and businesses should avoid to prevent potential issues with the IRS and to maximize their tax savings. Some of the top tax mistakes to avoid include:

1. Failure to Keep Accurate Records: Not maintaining organized and accurate financial records can lead to missed deductions and potential audits. For example, a small business owner who fails to keep track of business expenses may miss out on valuable deductions come tax time.
2. Incorrect Filing Status: Choosing the wrong filing status, such as single instead of head of household, can result in higher tax liability or missed credits. For instance, a taxpayer who qualifies as head of household but erroneously files as single may miss out on valuable tax benefits.
3. Overlooking Deductions and Credits: Failing to take advantage of all available deductions and credits can result in paying more taxes than necessary. For example, individuals who overlook education-related tax credits or deductions may miss out on significant tax savings.
4. Missing Filing Deadlines: Failing to file tax returns or extensions on time can lead to penalties and interest charges. For instance, a taxpayer who misses the filing deadline without requesting an extension may face financial consequences.
5. Ignoring Changes in Tax Laws: Not staying informed about changes in tax laws and regulations can lead to missed opportunities for tax savings. For example, a business owner who is unaware of new tax incentives may fail to take advantage of potential tax breaks.

By avoiding these common tax mistakes and staying proactive in tax planning and compliance, individuals and businesses can minimize their tax liabilities and avoid potential issues with the IRS.