You filed your taxes. You think the process is complete. Then, you realize you made an error. Will the IRS hunt you down for these discrepancies? Should you try to correct it, or ignore it and hope for the best? If you notice a discrepancy, take the following steps for simple tax problem resolution in Des Moines. IA.
Simple math errors, incorrect deductions and overlooked income are extremely common. You aren’t the first to file taxes with discrepancies, and you won’t be the last. If the IRS catches your mistake, they may fix it for you, or they may send a letter regarding the issue. The letter will explain the discrepancy and request additional information. Don’t panic, but be sure to respond.
File Form 1040X
If you catch an error before the IRS does, you must use the proper form to make the correction. Common situations that require correction include receipt of a revised W-2 from an employer or the realization that you forgot to claim some income. A Dear John letter to the IRS with a check for the difference is not the proper procedure. Use Form 1040X to file the changes.
Use snail mail
Unfortunately, you can’t file Form 1040X online. You have to send it through the mail the old-fashioned way. If you are correcting more than one year of returns, you must send separate 1040X forms for each.
It may be tempting to wait and hope the IRS will (or won’t) catch your error. This is a bad idea. Keep in mind that the IRS charges interest and penalties from the date the error is found to the original due date of the taxes. It’s best to correct mistakes right away to avoid these costly fees.
Amended returns can take up to 16 weeks to process. Remember, you are only one of millions filing corrections. If you don’t hear anything after 16 weeks, then it’s time to call the IRS and ask someone to research your return. It is also possible to track your return online, but it may be three weeks before it is in the system.
The best way to handle discrepancies is to ensure they don’t happen in the first place. If you can avoid mistakes, you will require less tax problem resolution in Des Moines. IA. Use best practices to produce the fewest discrepancies. Double check your personal information. Look for typos that could cause discrepancies. Double check all math, too. Simple arithmetic errors and inverted numbers are common. Set your paperwork aside and come back with fresh eyes the next day to verify everything is correct.
One of the best ways to handle tax problem resolution in Des Moines, IA is to get help when you need it. Don’t hesitate to contact professional tax services to prepare or review your filings. This extra diligence can be well worth the effort to avoid mistakes that cost time and money down the line. For experts you can trust, contact Accounting & Tax Professionals, PLC today.