What Happens If I End Up Filing My Taxes Wrong? What Do I Do Next?
What happens if you realize you have made a mistake after you have already filed your taxes? There's nothing to be concerned about. The IRS has strategies in place for you because it has dealt with situations similar to yours before.
What Should I Do If I Made A Mistake On My Tax Return?
Whatever error you made, it's critical that you correct it. Waiting too long makes fixing the error more challenging and time-consuming. The IRS will charge interest and penalties until your account is settled in full if the correction increases the amount of taxes you owe. In other words, the cost of fixing a mistake will increase the longer you wait to do it.
During tax season, people frequently rush to submit their tax information, which can be stressful. It's simple to fix mistakes during tax season; all you need to know is what went wrong and how to fix it.
Common Tax Mistakes
Having Math Miscalculations
Math errors are frequent, especially on paper returns, and can range from a misplaced zero or decimal point to a simple calculator error. Before submitting your return, always double-check your calculations.
Not Reporting All Income
It's possible that you overlooked a W-2 or received a 1099-C or another tax form in the mail after filing your taxes. In either situation, you must file an amendment to inform the IRS or you run the danger of starting an audit.
Forgotten Deductions Or Credits
You might owe more tax than you expect if you forget about a deduction or a credit. The IRS won’t automatically flag this type of thing, so if you realize your mistake, file a Form 1040-X and fix your mistake.
What To Do After Filing Wrongly On Your Tax Return
If the IRS sends you a notice, follow its instructions to resolve your mistake. If you notice an error independently, here’s what you need to do.
Double-check to make sure you made a mistake that the notice states. Taxes can be extremely confusing, and you might not always remember all your calculations.
Check to see if the IRS has already noticed the issue. If your return has been processed, is your tax refund larger or smaller than expected? The IRS holds 1099-C and W-2 information on file, and it does sometimes correct returns based on known information.
If you do need to make a correction, file an amended tax return, also known as Form 1040-X. You can use a 1040-X to submit additional or updated information to the IRS and to attach another form to your tax return.
Pay any additional tax owed as quickly as possible to avoid accruing interest.
It's common to make a mistake on your tax return. Amending it using Form 1040-X as soon as possible will possibly prevent taxpayers from being charged with penalties and interest. If penalties and interest accrue, taxpayers will end up being in tax debt if they don't pay it off right away. The IRS Fresh Start Program consists of 4 main programs that are accessible to taxpayers who owe much more than they can reasonably afford to pay. The four major programs are as follows: Currently Not Collectible (CNC) Offer In Compromise (OIC), Installment Agreement (IA), and Penalty Abatement (PA). These relief programs allow qualified taxpayers the option to reduce or even eliminate their tax liabilities. These tax experts will help you qualify for the program and help you figure out which options will give you the most suitable outcome.
Resolve Your Tax Bills
If you've found yourself in a nasty mess with the IRS, take a deep breath. For taxpayers who may have difficulty paying off an excessive amount of tax debt, there's a new and improved relief program that consolidates many major relief programs into a one-size-fits-all assistance program. Any issues regarding back taxes, unfiled years, or any other tax-related problems may be solved through one program; the IRS Fresh Start Program!
See If You Qualify For The Fresh Start Program Today!
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