The whirlwind of personal income tax return season has finally subsided for another year – or so you thought, until you realize there’s information you forgot to include. Whoops!
Now what?
Your next steps depend on the nature of the overlooked information. For example, let’s say you reported all your income on the return you sent to the IRS… but then you realize you forgot to attach a copy of your wage statement.
In this scenario, it’s best to take no immediate action. The IRS will eventually send you a notice requesting the missing form.
However, other errors, such as leaving out income or deductions, or realizing you’re eligible for a credit you didn’t claim, may necessitate amending your return.
To do so, you’ll need to complete Form 1040X, explaining any changes, and mail it to the IRS after your original return has been processed. Currently, e-filing isn’t an option for Form 1040X, so you’ll have to use a paper return, even if you initially submitted electronically.
As a general guideline, Form 1040X doesn’t have a set due date. However, if the omitted information increases your tax liability, filing promptly can minimize interest and penalties.
If the correction reduces your tax liability, you must file before the deadline for claiming your refund expires (typically three years from the original return’s due date). It’s advisable to reach out to your tax professional if you discover additional information after filing your federal and state tax returns. They’ll be able to assist you in making any necessary adjustments.
If you have questions, contact Paragon today!
