When it comes to filing taxes, it’s imperative that you put the correct information on your forms. However, tax season is stressful and most people rush to send their returns back in.
The most common errors include incorrect social security numbers and failing to fully sign the tax documents. However, mistakes happen and you’re not the first person to make an error on your IRS paperwork.
With that said, take a look at the info below to learn more about what to do when you make a mistake on tax return documents.
Take Action Immediately
The longer you wait, the more complicated and time-consuming it is to correct an error. Not only that, but the IRS charges interest and fines from the due date of your tax return if the adjustment indicates that you owe more taxes. So the longer you wait for an error to correct, the more costly it’ll be.
You can file an amended tax return to correct most errors if the due date for filing the tax return has expired. However, you can’t file an amended tax return online. You’ll have to mail it to the IRS.
If you know that you made an error on your tax return documents, but the filing deadline hasn’t passed, don’t submit an amended tax return. Instead, file another initial tax return with the accurate details.
Tax Mistakes: Receiving Notification From the IRS
Before the final filing of a tax return, the IRS gives you the ability to make a correction. The problem and how to respond to the IRS should be outlined in the notice. If the alterations detailed in the IRS notice is different from the mistake you think that you made, be sure that all changes are discussed in your response.
Also, if you receive an IRS notice about the IRS auditing your tax return, there will be details in the notice on how to proceed.
You can request an amended tax return if the IRS made adjustments to your tax return during processing.
You might need to ask for an audit reconsideration if the IRS has made changes to the tax return because of an audit or an IRS assessment.
A Mistake on Tax Return Penalty Fees
Usually, fines fall on individuals who make a mistake that leads them to underpay their taxes. For instance, if a person wrongly claims the head of the household status, they can receive more tax benefits and end up paying less than they owe on their taxes.
If a person fails to pay, they’ll face a penalty of 0.5% added to their unpaid balance plus interest every month.
However, in addition to underpaying, you never want to overpay taxes either. To learn more about overpaying, take a look at this article, Tax Preparation Fees: Are You Overpaying?
Don’t Panic When You Make a Mistake on Tax Return Documents
When you make a mistake on tax return forms, it’s easy to freak out. But there are certain steps you can take to cover yourself when you make an error.
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