Fixing Tax Return Mistakes

With the IRS changing tax laws more than taxpayers can keep up with, mistakes are inevitable when filing your taxes. Your mistakes will either cause you to underpay or overpay on your taxes. But, don’t fear, there are a couple of ways to fix any errors before IRS penalties head your way.

 

You made a mistake on your tax return, now what?

If your tax return due date has passed you have the ability to submit a qualified amended tax return to fix any errors. When you submit this type of return to correct a mistake and end up owing more tax, don’t worry, the IRS will not charge you any accuracy-related penalty. Though you will still have to pay the interest on the new tax money owed, as long as you pay your bill on time you will not have any additional penalties to deal with.

 

How do you file a qualified amended tax return?

You will need to fill out a 1040X form. Don’t forget to keep track of when the IRS receives this new return as proof later on – double-check with current regulations to see if the form can be re-transmitted or should be mailed to the IRS.

 

You notice your mistake before your tax return due date, can you fix it?

Yes! If you file a superseding return you have the ability to correct any errors made on your forms and submit it. The great thing is, the IRS will consider all of your new changes as a part of your original tax return as long as everything is filed before your original or extended due date. Worried about being audited? Filing this type of return does not give the IRS more time to look for any additional tax.

 

How do you file a superseding return?

When you fix the errors on your return form 1040 or any other form be sure to mail it back to the IRS instead of electronically filing it and always write “Superseding Return – IRM 21.6.7.4.10” in red at the top of page 1 of that 1040 form. That way the IRS can immediately identify what type of form you are submitting.

When filing your taxes, not only is it crucial to take your time, but it’s also helpful to consult a tax professional to catch any mistakes that could leave you paying more than you’d like to the IRS or even facing penalties. Contact us today for any and all of your financial needs! Looking to speak to a member of our team virtually? Book a virtual consultation here!

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