Help! What Happens If I Make a Mistake on My Taxes?
Written by Cooper & Friedman PLLC on April 5, 2023
Is there a time of the year more stressful than tax season? Most Americans would say no. In addition to you having to take the time out of your day to do them yourself, although most people look forward to a potential tax return, the filing process seems stressful, requires documents that might have been lost or unaccounted for, and can result in plenty of mistakes that cost you money.
But, every year, the month of April always brings about the process of filing your taxes and paying them, which is never fun for anyone. This year, because of the weekend and Emancipation Day, tax day will be on Tuesday, April 18th, 2023. For those who have never had to do taxes, it might be quite a frightening time – it might even be frightening to those who have been doing their own taxes for years!
We’ve all heard rumors of jail time if you commit tax fraud, but at the end of the day, you shouldn’t have to worry about that. If you accidentally fill in the wrong spot or miscalculate, you won’t be jailed! The important thing to remember is that tax fraud is a very deliberate act, not a ruse by the government to incarcerate the everyday man doing their best.
With today’s tax technology, professionals on standby to help you out for a fee, and professional auditors within the IRS itself, the old fear of being accused of tax fraud seems like it should be antiquated, but what does happen when you make a mistake while you file your taxes?
You Can Amend Your Tax Form Even After Filing
It’s likely that you won’t be getting an audit request right away. An accidental math mistake, wrong-line fiasco, or mix-up with definitions won’t earn you a side-eye from the IRS, but it could potentially cost you money in the form of a fee or fine, depending on how big the mistake is and how early it’s caught.
If you catch your mistake early, you can send in an amended tax form – Form 1040-X – and deal with it then. If the IRS catches it as they cross-reference with other data, they’ll likely correct small errors and send you a notice that they’ve done so or send you an amendment form to fix the mistake yourself to complete and send in by a certain date. If no one catches it, this is where you’ll likely face a fine.
The mistake will be processed and might turn up in an audit – if the mistake caused you to underpay the government, you’ll receive a negligence or late payment bill plus an interest fee equaling .5% of the amount due for every month it was unpaid until the total interest caps out at 25%. If your mistake caused you to overpay the government, they will return the amount due to you with your tax return.
Common Mistakes Made While Filing Taxes
Tax season can seem like a giant headache, looming over everything you have to do to keep your everyday life running. Because of this, mistakes can easily be made with the hectic chaos of life going on as you attempt to file your taxes perfectly. If you make a simple mistake on your taxes, it’s important to know that you aren’t the only one! Common mistakes that are made as taxes are filed can include:
- Simple Math Miscalculations
- Required Information Omittance or Mistakes
- Forgetting About Additional Income Sources
- Incorrect Deduction Claims
- Equating a Tax Extension with a Payment Extension
There’s a big difference between negligence and tax fraud, and the IRS is oftentimes good at differentiating between the two. Be sure to check with a trusted financial advisor or someone who is experienced with filing taxes if you have trouble, and if you’re faced with an undue debt collection charge, contact Cooper and Friedman for an experienced unfair debt collection lawyer to represent your case and find the relief you need!
If you or someone you love has been the victim of unfair debt collection practices in the State of Kentucky and are in need of an experienced debt collection attorney, give the lawyers at the Cooper & Friedman law firm a call. The attorneys at Cooper and Friedman PLLC have over 50 years of combined experience defending the rights of unfair debt collection victims. Contact us with questions you might have or schedule a free case consultation with an attorney by calling 502-459-7555 today.