For many people, tax season is one of the most dreaded times of the year. It can be stressful waiting to find out if you’ll end up owing the IRS or getting money back. In either case, you can usually breathe easier once you know your return has been filed. However, this sense of relief may be short-lived if you discover an error made during your tax return preparation. Whether you realize the problem on your own or the IRS sends you a notification, it’s important to know how to handle it. Below are a few steps you should take if you made a mistake.

3 Ways to Resolve an Error on Your Tax Return Preparation

1. Assess Your Modified Return

 If the IRS catches a mistake on your taxes before you do, they will send a letter detailing what was wrong and the adjustments that needed to be made. It’s common for them to include a modified return as well. Once you receive this, it’s essential to carefully review the proposed changes and their reasoning to determine whether you agree or not.

2. Make Corrections on Time

When you accept an altered refund from the IRS, you won’t need to do anything. If you owe more, you will have to send in a response page along with a check. If you find the error yourself, you must file a 1040X with the appropriate amendments. If the IRS owes you money, this will have to be done by mail within three years from the date your original tax return preparation was filed. If you owe money, you have two years to submit your 1040X amendments.

3. Determine How to Pay Unexpected Taxes

If you owe more taxes to the IRS, there are several ways to fulfill the financial obligation. Depending on your financial situation, you can immediately pay the amount in full, set up a monthly payment plan, or petition the IRS to settle your debt for less than you owe. In some instances, you may request a delay on collection efforts.

If you make an error on your taxes, the IRS is likely to give you a second chance to get it right, but it is imperative that you submit the necessary corrections promptly. Fortunately for the residents of Lincoln, NE, the professional accountants at Burch & Associates can help clients avoid the hassle by ensuring their tax return preparation is done accurately the first time. They have years of experience taking the stress out of tax season for both businesses and individuals. Contact them at (402) 483-4791, or visit their website to view a full list of tax services they offer.