You may be in a hurry to get the deed done as the deadline to file your taxes nears. This is a stressful time of year for everyone, and both tax preparers and filers alike can be in a rush to get everything in on time. Unfortunately, this type of rushing can lead to mistakes – which the Internal Revenue Service is not a fan of. Fixing these errors is usually not difficult. It’s the catching them that is. Here is what you should do when you discover you made a tax mistake.
1. Find It
The easiest sounding tip is often the hardest. Your mistake can be anything from a typo on your name to forgetting to claim an asset. It is critical that you take action, no matter what kind of mistake you made. The harder and more money it will cost it is to fix your mistake if you decide to wait. Those who made a mistake that requires them to pay more tax will find that the IRS will charge interest and penalties from the date these taxes were due until you pay in full.
2. Refile ASAP
You are allowed to file an amended return for just such an occasion. Form 1040 X allows you to do just that. Those who are owed a tax refund have a deadline for filing this form three years after the original return for the year in which you made a tax mistake or two years after you paid the tax for that year.
Those who owe the IRS face a different scenario. If and when the IRS discovers your error, they will charge you for:
- The amount owed.
- Interest rate of 3% or more.
- A failure to pay penalty of 6% or more.
- Other penalties as they see fit.
3. Get a Second (Expert) Opinion
No matter who filed your taxes, someone made a mistake. You should do everything to ensure your amended return is correct to put the situation behind you as soon as possible. Those who filed the faulty return themselves should seek the help of a professional tax preparer in their area. Filers who used a pro to submit a return with the tax mistake may want to reconsider. Those who received an audit from the IRS should take it seriously. They will do everything in their power to recover the taxes they feel you owe. Be sure to have the proper representation when communicating with them.
4. Know the Mistakes
Just about anything can go wrong when you file your taxes. Here are a few of the most common errors found when filing taxes:
- Incorrect personal information such as address, phone number, Social Security number, etc.
- Incorrect financial information such as checking number, routing number, etc.
- Filing for an extension does not mean you have extra time to pay your taxes.
- Incorrect filing status such as single, married, head of household, dependent, etc.
- Improper signature on tax returns.
- Forgetting to instruct IRS on how to issue a refund.
Correct Tax Mistakes in Houston
Be sure to contact us if you made a mistake in filing your taxes and need help to get it right.
