Industry News

Tax mistake? Don’t panic, amend!

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

You just filed your tax return a few weeks ago, but now you realize you made a mistake. What should you do? Don't panic. You can always amend your return if you have to. But first, make sure you have to. You need not amend your return if you discover that you made a simple math error. These will be corrected by the IRS computers, and you'll be notified of the change by mail. However, you should seriously consider amending your return if you paid substantially more tax than you had to -- for example, because you forgot to claim a deduction you were entitled to. If you made a mistake in your favor, failed to report income, or took deductions that you were not entitled to take, amending your return may avoid all or some fines, interest, and penalties if you're later audited by the IRS. Caution: Filing an amended tax return increases the chances that your tax return for the year involved will be audited by the IRS. If you're not sure whether to amend, consult a tax professional for advice...