Inaccurate Tax Return

Aug 02, 2022 By Triston Martin

Make sure you are careful when choosing the tax preparer you choose. Some don't have the correct information, and, as per the Internal Revenue Service (IRS), the taxpayer is responsible for the tax returns you file. That means you could have to pay more taxes, interest, or penalties. Correcting inaccurate returns will require more paperwork, but you can get this done by selecting a reputable tax preparer and double-checking your return for any errors. Learn how to make it right the first time.

Correction of an incorrect tax return

If you are hiring an expert to assist with your tax returns, Don't be skeptical that your tax return is error-free. So, what should be done if the IRS detects an error? A form could assist you in fixing a tax return if the filing status and the deductions, income, or credits are incorrect.

Utilize the 1040X to correct:

  • 1040
  • 1040NR

This form can be found via the IRS website. All requests should be submitted on paper and sent to your IRS service center to be processed. Before submitting it to the center, you want to use to be processed, make sure to attach copies of the altered schedules and any Form W-2s you have not included.

The form must be filed within three years from the date that you submitted the original tax return to claim either a refund or credit or to file it within two years of the date that you paid the tax, whichever was earlier. Ensure you receive the original refund when you file for a new one.

Suppose you must pay more taxes for this year's tax year and file and pay the tax before April 15 to avoid interest and penalty costs. If April 15 is a holiday, you must pay for it the following working day. Be sure to contact your state's tax department to determine if your state tax obligation is affected. You can now find an update on the state of your tax return via the internet or the toll-free phone number.

Tax professionals who do not know the law often overstate business and personal expenses, make false deductions, claim exemptions or credits for their clients, or alter income numbers. The IRS tackles these blunders with Form 3949-A.

It is recommended to file this form if you believe that the company or an individual is not in compliance with the tax regulations. The form or letter should be sent to the Internal Revenue Service, Fresno, CA 93888. It's not necessary to identify yourself; however, the IRS considers it beneficial if you provide your personal information; the information is kept private.

Find a Tax Preparer who is Qualified

The best accountants keep your best interests in mind and adhere to the guidelines. They'll request documents and receipts and inquire about your tax situation to help determine your income total, exemptions, deductions, and other things. The IRS recommends that when looking for an expert tax preparer, follow these steps:

  • Be sure to inquire about fees and beware of those that promise a bigger reimbursement than their rivals.
  • Be sure to contact the person who prepared the return after filing it, and they respond promptly.
  • Check the credentials of the person who is preparing. Are they in compliance with the state's registration or licensing requirements? Are they enrolled in the profession of agent CPA and attorney?

Avoiding Common Mistakes

  • Incorrect filing status
  • Use of incorrect forms or schedules
  • Untrue filing for earned income credit (EIC)
  • Claiming ineligible dependents
  • Paying and reporting non-domestic payroll taxes
  • In the absence of reporting income, it wasn't reported on Form W-2.
  • Failure to file a tax return even if you are due to receive a refund
  • Incorrectly calculating the liability for AMT, also known as the alternative minimum tax (AMT)

The National Association of Tax Professionals (NATP) recommends paying attention to the following issues:

  • The return is dated at the right location.
  • If you are filing jointly, ensure your spouse has also completed the tax return.
  • Copy B of every Form W-2 is included, along with any Form 1099 that details tax withholding.
  • The return is sent to the correct address.
  • The Social Security number is reliable.
  • The check will be issued for the amount owed by the "United States Treasury Service," not the IRS.
  • Tables of tax are checked twice, as are all calculations.
  • A copy is kept to keep for your documents.
  • The postage amount is sufficient in the envelope, and the complete return address is provided.
Latest Posts
Copyright 2019 - 2023