{"id":818,"date":"2019-02-28T00:43:17","date_gmt":"2019-02-28T00:43:17","guid":{"rendered":"https:\/\/taxreliefprofessional.com\/?p=818"},"modified":"2023-09-26T22:24:28","modified_gmt":"2023-09-26T22:24:28","slug":"it-was-an-honest-mistake-does-the-irs-forgive-honest-mistakes","status":"publish","type":"post","link":"https:\/\/taxreliefprofessional.com\/tax-debt-relief\/it-was-an-honest-mistake-does-the-irs-forgive-honest-mistakes","title":{"rendered":"It Was an Honest Mistake!: Does the IRS Forgive Honest Mistakes?"},"content":{"rendered":"\n

Let’s face it: taxes are complicated<\/a>. <\/p>\n\n\n\n

As tax season rears it’s ugly head once again, many across the country are gearing up to work through piles of paperwork and complicated accounting procedures.<\/p>\n\n\n\n

There is no getting around the fact that tax laws can be difficult to wrap your head around. You try and do your best and submit your return to the IRS with no mistakes. But are you ever really certain that you’re 100% clear and correct in your calculations? <\/p>\n\n\n\n

Many people get nervous about doing their taxes for this very reason. What happens if you do slip up on your tax return and make a mistake? Does the IRS possess the power to forgive? Read on, and we’ll fill you in on everything you need to know about tax mistakes. <\/p>\n\n\n\n

Common Errors When Doing Taxes<\/h2>\n\n\n\n

There are a thousand places where you can accidentally go wrong when doing your taxes. Common mistakes on tax returns include incorrect or missing social security numbers, computation errors, or simply putting information in the improper place. <\/p>\n\n\n\n

Other common slip-ups during tax season? Making claims without an expenses receipt, claiming deductions for the wrong year, or forgetting to include a certain W2 or 1099 form.<\/p>\n\n\n\n

Most of these kinds of mistakes are easy to miss. When it comes to these kinds of small mistakes, the IRS is generally very forgiving. The IRS even can fix small math errors for you, or accept late forms that might have been lost in the shuffle. <\/p>\n\n\n\n

If you make a mistake without realizing it, the IRS will alert you if it’s something that they can’t fix on their own. When documents are missing from your tax return, for example, the IRS will likely send you a letter requesting them. <\/p>\n\n\n\n

If you realize one of these common errors on your own, you can be proactive and move to notify the IRS. Take a 1040X, Amended US Individual Income Tax Return and send it by regular mail to the IRS to correct any and all mistakes you may have made. <\/p>\n\n\n\n

In this situation, you would want to include the original tax form that you sent along with an amended cop<\/a>y. The IRS will then update your return. In most cases, the IRS is very flexible and forgiving when it comes to minor mistakes. <\/p>\n\n\n\n

More Serious Mistakes Or Errors<\/h2>\n\n\n\n

Many tax mistakes are fairly innocent and can be resolved fairly easily. If you make a mistake that results in you paying less tax than you actually owe, the IRS may be less forgiving. <\/p>\n\n\n\n

You can be found guilty of tax fraud if fail to file a return, under-report your income, over-report your expenses, or claim non-existent dependents. These are serious charges, and evidence of intent to evade taxes can get you hit with a large number of fees and penalties. <\/p>\n\n\n\n

Even if it’s an honest mistake, errors that result in taxes owed can incur a required penalty. Late payments will result in five percent additional payment of the unpaid taxes each month. This interest grows over time but peaks at twenty-five percent. <\/p>\n\n\n\n

You can also receive a penalty for late filing. This usually occurs after a sixty-day period and there is typically a minimum penalty of $210. <\/p>\n\n\n\n

Substantial underreporting of income can result in additional penalties that are designed as punishment. Underreporting of $5,000 or more can lead to a huge penalty: twenty percent of your owed taxes. That can be quite a hefty amount. <\/p>\n\n\n

\n
\n\n
\n
\n

\n Evaluate your tax situation\n <\/h2>\n

\n By evaluating your tax situation, you can identify areas where you may be able to reduce your tax burden and make informed decisions about your financial future.\n <\/p>\n \n \n\n\n

\n
\n
\n