Doing your taxes can be stressful and sometimes confusing. Though mistakes can happen, it’s important to fix any errors as soon as possible on your tax return. In this article, we will explain what you can do if you make a mistake on your return(s).
At Marcus, Fairall, Bristol + Co., located in El Paso, TX, we offer tax preparation, tax resolution, forensic investigations, and many more. If you believe you might have made a mistake on your tax return, we can help. To speak with one of our professionals, give us a call at (915) 775-1040 or contact us online today.
Fixing Your Tax Return
If you discover you made an error on your tax return, there’s nothing to worry about as long as you fix that error promptly. If you expect a refund from your amended return, you have three years from the date your return is first filed to make any necessary corrections. If the return was filed more than three years ago, and you want to file an amended return, you can still do so, but any refunds over three years after the date the original return was filed will be lost. Generally, the IRS will detect a math error, deduction mistake, or income omission and will then send you a letter informing you; they will also let you know how you can go about correcting it. Sometimes those mistakes result in you having to owe money, and if that’s the case, you must pay the balance as quickly as possible to avoid paying interest and penalties because of your error. Proper tax preparation in El Paso can help you avoid these mistakes. Some possible corrections that need to be made include:
- Adding or subtracting dependents
- Over/Understating your total income
- Taking care of tax credits or discrepancies
- Changing a filing status
- Combined business and personal expenses
- Misspelling of names or addresses
- A dependent files incorrectly
- Forgetting necessary paperwork
- Missing signatures
If any of these instances occur, you must file an amended tax return. However, if you happen to catch an error before the filing due date, you will have to file a superseding return to replace the faulty one. The difference between the two forms is that the superseding form is a completely new return, while an amended one is an additional form to your return. Thankfully, the IRS understands that mistakes can happen and provides you with every possible tool you need to fix them. However, despite providing the tools to fix the errors, you must address the issues immediately. For future returns, consider seeking out an El Paso tax preparation company to help you through the process to avoid any mistakes.
Penalties
If you fail to make any corrections, you will be hit by an IRS penalty. You can receive up to a 20% penalty on the amount you owe. Tiny errors like misspelling your address or putting the wrong filing year will NOT result in a penalty. You will only be penalized if there is a significant math error (deductions, income, etc.).
Tax Preparation in El Paso
At Marcus, Fairall, Bristol + Co., located in El Paso, TX, we offer tax preparation services to help you avoid making mistakes on your returns. If you received a letter from the IRS saying you made an error, call (915) 775-1040 today for assistance.