If you find out that you forgot to report something on your tax return or you get a corrected W-2, it’s not the end of the world. You will probably just have to amend your tax returns to include the correct information. However, there are some very important reasons why you should submit amendments as soon as possible.
First, if you end up owing additional tax, IRS will charge penalties and interest from the original due date of the return. The longer you wait to file your amendment, the bigger the tax bill will be.
Second, if your amendment results in an additional refund, be warned- the statute of limitations is only three years from the original due date of the return. If you file the amendment after this date, IRS may decide to keep your refund!
Third, if you do get assessed late payment penalties, it’s possible to request for removal or abatement of those penalties. In general, your abatement request will be viewed more favorably if you immediately corrected the issue when you became aware of it, rather than putting it off for two or three years.
Did you discover your original returns were filed incorrectly? Clergy Financial Resources can help. Visit our website, at https://www.clergyfinancial.com/services/clergy-tax-preparation/free-tax-review/, for a complimentary review of your prior return.
Clergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas.
This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.
For more information or if you need additional assistance, please use the contact information below.
Clergy Financial Resources
11214 86th Avenue N.
Maple Grove, MN 55369
Tel: (763) 425-8778
Fax: (888) 876-5101