Amending a Federal Tax Return
A large number of taxpayers file their own tax returns or have a tax professional prepare them. Whether tax returns are prepared using a tax software program or a paper form there is still some chance that a mistake can be made. Once a tax return is prepared many taxpayers are unaware that an error has occurred; however, others may notice it. If it is known that an error was recorded on a federal tax return there is a way to amend it.
The most common mistakes that many taxpayers make when preparing their own paper taxes involve math. A professional tax software program does not guarantee that mathematical mistakes will be caught; however, the majority of programs do check and verify accuracy. If the only mistake made on a federal or state tax return is a simple mathematical equation chances are the mistake will be caught and altered by the IRS.
Another common error that many taxpayers make when filing their tax returns includes providing the incorrect social security number or other important personal information. In this case it may be impossible for a tax return to be processed. If this problem arises and it goes unnoticed by the taxpayer it is likely that the IRS will send the tax payer a notice requiring that the correct information be obtained.
Individuals who receive a notice that they forgot to report a portion of their income or may have forgotten to declare a tax deduction can amend their tax return. An Amended Individual Income Tax Return form can be acquired from a number of locations. This form can generally be obtained wherever traditional tax forms are available, which many include financial institutions, a library, or the post office. The form can also be accessed through TaxEngine.com or by visiting www.irs.gov. The Amended U.S. Individual Income Tax Return is listed as Form 1040X. If any additional paperwork, such as an additional W-2, is required it will be listed in the instructions for the 1040X form.
An amended return will be processed once the IRS receives the paperwork; however, it is important to remember that this is likely to cause a delay in a taxpayer receiving a refund. If a payment is due to the IRS after a tax return was amended, the amount due is still required to be paid in full by the traditional April 15th tax deadline. Purposely causing an error in a tax return to cause a delay in having to make a payment to the IRS is illegal. Late fees and penalties may apply if a payment is not processed on time.
Almost all tax return mistakes or errors can be prevented. Carefully taking the time to prepare and review a completed tax form is the best way to catch a mistake before the form is processed and sent out to the IRS. It is likely that if a mistake was made on a federal tax return that a similar mistake may have been made on state tax forms. Examining tax returns will not only prevent any late fees or penalties, but it will also allow a taxpayer to receive their refund faster.