What should you do if you make a mistake on a tax return?

tax return

 

I am gathering information for my 2016 tax return and realized that I made a mistake on my 2015 return. What should I do?

 

campaign contributionOn your tax return, if the mistake involves a document that is provided to the IRS from a third party, for instance a W-2 or a 1099, and is significant it is best to go ahead and own up to the mistake before receiving a matching notice from the IRS. Mistakes on a form 1040 are resolved by filing a form 1040X. Filing the form 1040X will reduce the penalties and interest to the time period between filing and the original due date of the 1040 return. Waiting for the IRS to catch your mistake could result in greater penalties and interest. It is always a good idea to contact a Murfreesboro CPA when filing an amended return for advice on filing and the severity of the mistake.

Rebecca Upton, MBA, CPA