Is It Always a Good Idea to Amend Your Tax Return?

Your tax return is filed and you’ve even received your refund check. Naturally, you had hoped to be done with taxes for another year. But what do you do if you discover a mistake on your return? Should you file an amended return? Depending on a few circumstances, filing a 1040X may not end up working in your favor. Before you decide to amend your tax return, here are some things to consider.

If You Are Due a Tax Refund

If a correction will result in a substantial additional refund, usually your best option is to file the amended return. However, there some caveats:

If You Owe Additional Taxes

If you discover errors on your tax return that will result in an additional tax obligation, you are required to correct the errors and file an amended tax return, along with the amount due.

If the IRS discovers your tax error before you do, they could add interest and penalty fees. The sooner you file the amended return and pay the tax that is the due, the better.

Finding an error on your tax return can be unsettling, but rest assured there are ways to fix the problem. Contact Cray Kaiser today to determine the best solution for you.

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