When it comes to crunching numbers, it’s always possible to make an error. And given how complicated tax return preparation can be, it’s no wonder why a large portion of Americans make errors that get flagged by the IRS. While these blunders can carry penalties, it’s helpful to know that there are many resources out there to help you—including a few solutions from the IRS itself. If you’re worried about a mistake on your taxes, here’s what you should know to keep your name in the clear.
What if You Filed Your Taxes Incorrectly?
If there’s a minor error on your taxes, the IRS will likely send you a notice in the mail. Using the information they have available to them, the organization will calculate a new total of taxes due that you may owe. The consequences get more severe, however, if the mistake is noticeably questionable. For example, failing to report income or claiming a large number of charitable donations can result in an IRS audit.
If the error is believed to be intentionally deceptive, the IRS could levy hefty penalties against you. Making false claims or concealing information during tax return preparation, for instance, may be considered fraud and require you to pay up to 75% of the resulting underpayment. Whatever the severity of the mistake, it’s likely that the IRS will charge you a late payment penalty as well as interest on the unpaid amount.
What Should You Do if You Made a Mistake?
If you receive a notice from the IRS regarding an error they discovered, reach out to a tax consultant. These trained professionals can help pinpoint the mistake in question and determine if the amount owed is accurate.
If the amount isn’t accurate, you’ll have to file an amended tax return. In simple terms, this process involves many of the basic tax return preparation steps with some additional paperwork that clarifies the error.
Whatever you do, don’t ignore the problem. If you don’t correct an error or settle an existing debt, you can continue to accrue penalties and interest that will end up costing you more in the long run.
Whether you need to fix a mistake on your taxes or want to avoid them in the future, US Tax Express can simplify the process. Based in Charlotte, NC, these financial consultants offer end-to-end tax return preparation services for both commercial and individual entities. Understanding all current tax laws, these professionals will use advanced tools and techniques to calculate your return in a quick yet accurate fashion. They’re also well-versed in amendment procedures and can help you correct any errors that have increased your total amount owed. Enjoy a level of expertise that’s resulted in 22 years of service without any incident of audits or client delays due to negligence. To learn more about these affordable year-round tax services, visit this financial firm online or call (704) 817-9517.