Did you know over 154 million individual tax returns are filed every year? Whether it’s your first time filing taxes, or you’ve been doing it for years, odds are you’re scared of making a mistake.
This is perfectly natural. Tax problems are bound to happen eventually. So, what do you do if you know you made a mistake on your returns?
Simple: read this article. In it, we’ll walk you through what to do with mistakes, big and small. Let’s get started!
The IRS May Correct Smaller Mistakes
The most common type of tax mistake tends to be simple math miscalculations or forgetting to send a particular document. The good news is that the IRS tends to correct these problems on there own.
If you make a simple math error, the IRS will catch it and automatically change it to the correct number. Or, if you forget a document, the IRS will send you a letter requesting it.
Make sure to never answer any phone call that claims they’re from the IRS. The IRS will never call you and this is a popular scam that many people use.
If you suspect you made a small error, wait until your return is fully processed. Then the IRS will contact you.
Bigger Mistakes Require an Amended Return
Bigger mistakes include things like changing your filing status, correcting your income, or changing the deductions/credits used on your return. If you made one of these mistakes, you will need to file an amended return.
This is a separate return that you send in after your initial one with the mistake. Typically, you have a three-year tax filing deadline to file an amended return. Not sure whether or not you need an amended return?
Don’t panic. Just take this interactive questionnaire offered by the IRS. It will let you know whether or not it’s necessary to file an amended return.
How to Avoid Tax Mistakes in the Future
If you made a mistake on your taxes odds are you want to do everything possible to avoid it in the future. The main reason people make tax mistakes is that they try to tackle this complicated process themselves using online tax filing.
This is bound to lead to mistakes eventually. Instead, consider going with a tax advisor. These professionals, like the kind found at Wealthability, will make sure that you don’t make any mistakes when you file.
What’s more, tax filing services will provide you with perfectly legal strategies that can save you a lot of money.
Appreciate Help With Tax Problems? Keep Reading
Ideally, this article helped you learn what to do when you encounter tax problems. The most important piece of advice we can offer is to stay calm. Stressing out about it won’t get you anywhere.
So, take a deep breath and try solving the problem on your own. If you need help, there are thousands of tax experts out there who can help you.
If you enjoyed reading this article, check out the rest of our website for more informative content.
