You Shouldn't Ignore Mistakes On Your Tax Return!

By Author: DANNY BREEDLOVE
Total Articles: 11
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Many taxpayers find Tax Day as the cruellest periods of the year especially if they have not organized their file returns. It can be even more frustrating after you realize there were some anomalies in the information you submitted long after you filed your returns. Some taxpayers tend to ignore such errors which may cost one a good amount of money in fines and penalties!

Of all the possible errors a tax payer could make in filing a tax return, the most common is an arithmetical misstatement. Transferring figures from one form or schedule to another can be an up-hill task for some, and as such, a wrong transfer of tax figure could result in a larger tax bill or eat up into your tax refund.
Fortunately, the IRS can correct such errors of you, but to be on the safe side tax software programs are available on the internet to mitigate numerical errors. More importantly, certain changes in personal information should not be overlooked, for instance, change in names due to marriage or divorce, change of residence address, credits and most importantly changes in individual taxable income. For changes in names or addresses, ...
... it is essential to notify the IRS by filling Form 8822 while changes in income should be updated through Form 1040X, Form 1040A, Form 1040EZ, Form 1040NR or Form 1040NR-E2 - all downloadable from the IRS website. It is worth noting that amended tax returns cannot be submitted online and, thus, should be posted by to the relevant mail address provided in the amendment forms.

Two situations also necessitate amending a tax return; on realization that you owe additional tax for a particular tax year for which the due date has not passed and claiming a tax refund for an overstatement of your tax obligation. Form 1040X serves both situations where, in the first situation, it should be filed stating the additional tax obligation and paying the amount owing before the due date. It is important to do so to avoid fines and interests due to late payments. For a tax refund claim, however, Form 1040X should be filed within 3 years of filing the tax return or within 2 years after payment of tax. Additionally, ensure that the details entered are correct and up-to-date to avoid a smaller tax refund than you deserve.

Finally, after all amendment forms have been filled correctly, they should be mailed to the appropriate address provided by the IRS for further processing. IRS recommends that the estimated processing time is sixteen weeks after which one can check the status of their Form 104oX using the “Where's My Amended Return?” feature on the IRS website.