Common mistakes in tax returns have increased by 200% in the past year.
But how do you correct an error in your tax return?
With this guide, you can learn what happens if you file taxes wrong and what you may be able to do to fix the situation.
From what the IRS will correct to filing an amended return, fixing mistakes is not as hard as you would think. Now let’s take a look at how to fix tax return mistakes!
Common Filing Mistakes
Filing taxes is often a lengthy process that can lead to many errors. But people often make these five common mistakes when filing a tax return:
- Wrong Social Security Number
- Filing Under the Wrong Status
- Errors in Tax Credits or Deductions
- Math Errors
- Incorrect Bank Account Numbers
In order to prevent mistakes from happening, slow down, and read the instructions carefully. You can also plan ahead and have important information ready such as your social security number.
What Happens If You File Taxes Wrong?
Filing taxes can be a complicated process; that’s why tax professionals understand mistakes sometimes occur. Whether it’s a small inaccuracy or large error, most mistakes are completely fixable. If you keep these filing tips in mind, you’ll no longer have to stress about tax mistakes.
The IRS May Fix the Mistake For You
The IRS regularly sees harmless errors such as math and capitulation mistakes. Instead of asking you to fix such errors, which requires more paperwork and time spent on the project, the IRS will most likely fix the mistake for you.
That means, in some cases, the IRS will adjust payment values and capitulation errors.
If the IRS does correct any mistakes, you’ll likely receive a letter within a week or two of the correction. The letter explains why the correction was made and advises if any additional steps need to be taken.
Most Mistakes Can Be Fixed By Filing an Amended Return
If you realized you made a big mistake or you forgot to report something crucial, you’ll want to file an amended return. Amended returns can correct any mistakes, from small errors to large details. But in order to file an amended return, you’ll need copies of your previous tax returns.
Unlike regular tax returns, amended returns offer no e-file option. Instead, you have to print out all your documentation and mail it in. Processing can take up to 16 weeks once it’s received.
You Might Be Owed a Refund
Due to the corrections you filed, you may be owed a refund. You can choose to have it applied to next year’s return or have the check mailed to you.
However, to claim a refund, you must file an amended return within at least three years after your original return. If you haven’t seen any compensation after an extended period, you should look into a tax lawyer. He or she can help you come with a tax resolution.
What happens if you file taxes wrong? You’ll be required to fix the error, but otherwise, you’ll be in good standing.
Mistakes do happen if you see you’ve made a mistake don’t panic simply file an amended return or wait for the IRS to fix it for you.
To prevent mistakes from occurring, make sure to read carefully, and always check your work. For more information on tax mistakes, visit our blog!