July 22, 2013
When to File an Amended Tax Return
If you realize after filing your taxes that there was an error on your return, could an amended return be in your best interest?
Have you ever discovered after filing your income taxes that your employer sent an incorrect W-2 Form, or you forgot to report income.
Although it's tempting to let such mistakes slide, chances are the IRS will eventually discover the error. Then, you'll be liable for interest and penalties going back to the original due date. On the other hand, if you overlooked tax deductions or credits you should have claimed, you could be due a big refund. Either way, you should file an amended tax return, using IRS Form 1040X. The process is relatively straightforward, but I'd recommend following the instructions at IRS.gov.
Bottom line: The IRS usually spots mistakes eventually, so you'll rest easier by filing an amended return.
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