Make a Small Mistake on Your Tax Return (2024)

FAQs

Make a Small Mistake on Your Tax Return? ›

If you made a mistake on your return, filing an amended return, IRS Form 1040X, to correct the error may lower the amount you owe. You may use the step by step instructions to help you fill out the amended return.

To Correct a Tax Return Mistake, File an Amendment

Your next move: file an amended tax return. Simply put, an amended return is usually filed because something was incomplete, incorrect or omitted from the original tax return.

Generally, the IRS can include returns filed within the last three years in an audit. If we identify a substantial error, we may add additional years. We usually don't go back more than the last six years. The IRS tries to audit tax returns as soon as possible after they are filed.

An IRS notice may alert you to a mistake on your tax return or that it's being audited. You can verify the information that was processed by the IRS by viewing a transcript of the return to compare it to the return you may have signed or approved.

Tax fraud must be done intentionally. Instead, the IRS refers to these mistakes as “negligent reporting.” If you realize after filing a tax return that you made a mistake, you can file a form with the IRS to amend it. You only have a limited amount of time to file an amended return.

5% of the amount due: From the original due date of your tax return.

Making a mistake or unintentionally forgetting to report income or take a deduction isn't the end of the world. In fact, the IRS receives many incomplete returns each tax year, which is why it allows you to make corrections by filing an amended return on Form 1040-X.

The IRS typically corrects math errors without rejecting a return. Tax returns get rejected frequently because a name or number on the return doesn't match information in the IRS or Social Security Administration databases.

We may be able to remove or reduce some penalties if you acted in good faith and can show reasonable cause for why you weren't able to meet your tax obligations. By law we cannot remove or reduce interest unless the penalty is removed or reduced.

If there's a mistake and the IRS sent you a notice or returned the form. If information is missing, the IRS will either return the form or send you a notice asking for specific information it needs to finish processing your tax return.

How many people make mistakes on their tax return? ›

Tax season can be a stressful time of year for many people. And if you have a complicated tax situation, that pressure can be even greater. Unfortunately, according to the Internal Revenue Service (IRS), nearly 17 million mathematical mistakes were made on tax returns in 2022 alone.

The amount of an accuracy-related penalty equals 20 percent of the portion of the underpayment attributable to the taxpayer's negligence or disregard of rules or regulations or to a substantial understate- ment.

If you didn't pay at least 90% of your taxes owed (or 100% of last year's tax liability) and owe more than $1,000 when you file your taxes, you may be charged a fine called the underpayment penalty.

The IRS has up to six years to find taxpayers who omitted more than 25% of their income. As with the three-year statute, it typically begins with either the April due date or the October due date. The 25% threshold applies to gross income from all sources.

Ideally, you'll realize that you've forgotten to add income before the IRS takes notice; if so, you'll need to amend your return by filing a Form 1040-X. The best course of action is to act quickly to rectify the situation.

Maybe you found a tax form behind your desk or maybe you receive an adjustment to a 1099 form from your bank – whatever the reason for having new information, you can generally go back three years to file an amended tax return in order to claim a credit or refund.