Why You Should Hurry and Pay those Old Tax Bills

Coronavirus has really rocked the world and impacted the way things are done, and that extends to the IRS. Right now, the powerful bureau is not processing any paper returns. They’ve also allowed for an extended filing deadline for taxpayers: July 15 instead of April 15.  

With that said, however, amended returns are a bit in limbo right now since those can only be filed on paper. But, if you need to file an amended return and owe money from past years, don’t think you get a free pass. Sure, your return may not be processed for awhile, but those penalties and interest are still accumulating. Thus, pay your tax bills right away. Otherwise, you could end up having to pay much more than you bargained for!

If You’ve Already Filed

If you’ve already sent in your amended return, rest assured that the IRS has received it. However, since they are not processing these returns, you likely won’t hear anything about it for awhile. They have requested that taxpayers avoid filing additional returns. They’ve also requested that taxpayers not ask for a status check on their paper returns. No information is available on them at this time.  

Not being able to get feedback or confirmation from the IRS can be troubling, but given the unprecedented times, filers should simply pay their tax bills and wait until they hear further news.

How to Pay

For those who need to settle tax debts, the best solution is to pay their debts online via one of the IRS’ payment processors. Sending a check is not recommended during this time and, if not received or processed, it could result in a failure to pay penalty.  

The Bottom Line  

Whether you’ve already filed an amended return or are waiting until the dust clears, the bottom line is that you still need to pay what you owe. The IRS will eventually match your return to what you owe. And, once they see when it was paid, they’ll avoid charging you fines and fees!

Amended Tax Returns and What You Need to Know

Tax time is stressful for everyone. And all that stress can sometimes lead to mistakes in filing. If you’ve sent off your return and then notice you’ve made an error, don’t panic.  You can correct your mistake by filing what is known as an “amended return.”   

When to Amend

One of the main reasons to amend your tax return is if you’ve underreported your income. Not reporting your full income is an offense and can get you in trouble with the IRS, so you will definitely want to report this

You should also file an amended return if you missed out on some tax credits or tax deductions that would have saved you money.

Form 1040X

Most of the time, when you need to file a tax return, it’s as simple as filling out Form 1040 X.  You can use this form if your original tax form (the one you’re correcting) was:

·        Form 1040

·        Form 1040A

·        Form 1040EZ

·        Form 1040EZ-T

·        Form 1040NR

·        Form 1040NR-EZ

Just remember that amended forms have to be filed the old-fashioned way, i.e. on paper, so make sure you don’t waste any time in getting these forms filled out and done. It’s also not a bad idea to have a tax professional check over your amended form to protect you against any further mistakes.

Time Limits

One final thing to keep in mind is that there are time limits related to how long you have to file your amended tax return.

You have up to three years after filing your original return to get your amended return in. If you’ve already paid the IRS your taxes, you have two years after paying.

That may sound like a lot of time, but it goes by quickly, so be sure to fix errors right away.

And, remember, it is always better to avoid errors in the first place by having a professional prepare your taxes.

What You Need to Know About Amended Returns

When you send in your tax forms each year, you hope against hope that they are perfect and correct. Unfortunately, though, as humans, we all make mistakes from time to time, and sometimes, you may find that you’ve forgotten to include some extra income you’ve earned or made some other kind of mistake. If this happens to you, don’t beat yourself up! After all, taxes are complex, making it easy to make mistakes. Furthermore, when you do make a mistake, it’s not that hard to correct it. You simply need to, in most cases, file an amended return.   

Amended returns, which basically allow you to change things about the original return that you filed, are fairly simple and straightforward. While you can file them in a variety of situations, some of the most common reasons for filing them include:

l  You’ve forgotten to include extra income

l  You’ve missed deductions or credits

l  You entered an incorrect filing status

l  You inaccurately reported your dependents

l  You made a mistake when reporting your total income

Keep in mind, of course, that amended tax returns are only necessary if your return is accepted by the IRS. When that happens, it’s up to you to bring the error to the attention of the IRS. If the return gets rejected, though, you can fix the return by simply re-filing it. Also, understand that, when it comes to matters of simple mathematical errors, the IRS will often catch and fix these for you without rejecting your return and without you having to file an amended return.

If you do ultimately need to file an amended return, either do it yourself via form 1040X, or, even better yet, visit with an accountant who can help you to file the amended return and, hopefully, to not make further filing mistakes in the future!

Related articles

• Thanks to an IRS change, filing taxes could get easier in 2017 (businessinsider.com)

Tips for Filing an Amended Tax Return

Despite your very best efforts, you may, at some point in your life, end up filing a tax return that is incorrect in some way. This could simply be due to the fact that you were rushing to meet the impending tax deadline and made a mathematical error. Or, maybe you had a dishonest accountant or inaccurate software. Whatever the reason, if you made some serious error, like under reporting your income or forgetting to file for credits you deserved, or even a more minor one, don’t panic! The IRS knows that people make mistakes, and it has policies in place to allow for amended tax returns.

Whatever you do, don’t just avoid amending a wrongful tax return because you think it will be too stressful or too difficult; take the necessary steps now to amend your tax returns and set things right. If you don’t, you could miss out on great benefits, or, even worse yet, find yourself in legal and/or financial trouble or even facing an audit.   

Form Fitting

As mentioned, the IRS is quite used to people making (and amending) errors on their tax returns. In fact, it is so used to it that it has a specific and simple form you can fill out if you have made an error and need to fix it.

You can fill out Form 1040X to amend any errors as long as you initially filed one of the following very common tax return forms:

l  Form 1040

l  Form 1040A

l  Form 1040EZ

l  Form 1040EX-T

l  Form 1040NR

l  Form1040NR-EZ

If your originally filed form is not on the above list, you can still amend your taxes; it just may be a bit more complex of a process, so, if the form that you originally filed is not listed above, contact a tax adviser for help and information on how to amend your return. Most people, however, will simply be able to fill out the specialized amended form.

Pre-Filled Information

When you do have to file an amended form, the IRS does you a major favor by presenting you with a pre-filled form (at least if you go through the re-filing process online, which is recommended).

This form will contain all of the information you originally filed, which means that you won’t have to re-enter all of that tedious stuff, like your social security number, name, and address. Thanks to the pre-filling feature, you can simply go back through the form, find the spot or spots where you made a mistake, correct them quickly, and be on your way. What could be simpler? To get this nice benefit, however, make sure you are doing your filing and/or refiling online.

Provide Documentation

In addition to filing and/or refiling online, make sure that you have any necessary documentation of the changes you are making and, even more importantly, WHY you are making those changes available.

Providing this documentation will allow the IRS to quickly and easily see your error, to fix your form/status, and to move on, without opening you up to an audit or other issues.

If you do not have documentation, are not sure what documentation would entail, or have any other questions or “special circumstances,” just contact a qualified accountant in your area to make the amendment process even quicker and easier to go through.