To err on tax returns is human. To forgive is Xtraordinary, and yes, the misspelling is intentional. Tax law lets us correct mistakes we make on our 1040s via another form, the 1040X. Most people file 1040X, which is known as amending your return, because they discovered they didn't claim a tax break that give them a (or a bigger) tax refund. Of course, since the Internal Revenue Service is involved, there are some rules and certain steps you must follow. Here are five key things to keep in mind if you discover you need to re-do a previously filed tax return.
Amending when it costs you more: Most of the time, folks file a 1040X because they inadvertently cheated themselves out of some tax savings. That's a wise move. But you should file a 1040X even if you discover a mistake or oversight that means you owe Uncle Sam more tax money. Why? Well, the main reason is that you're an honest person. The other big reason is money. Really. Yes, fixing tax errors that short-changed the U.S. Treasury will cost you. Not doing so as soon as you find them could cost you more because the IRS is likely to also eventually discover your underpayment. When that happens, be it mere months or many years later, the IRS will come after you for the unpaid amount plus those dreaded penalty and interest charges that have been accruing. If you catch and fix the unpaid tax mistake first, your Form 1040X filing will stop those added charges as soon as the IRS gets the corrected information. You also might find these items of interest:
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from http://www.dontmesswithtaxes.com/2017/10/form-1040x-amended-return-for-fixing-tax-filing-mistakes.html
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