Tax Declaration Rectify or not your report

Tax Declaration Rectify or not your report

Can you rectify your taxes if you forgot to report anything in your report o you did any errors? But should you do it? That depends. You should file your tax report with the IRS every year if your income reaches the level that is required. In fact, you may be charged with a minor crime, for failing to do your tax report or for a felony for false tax reports. First, you have to ask yourself if your tax report was as correct as possible. Otherwise, you will probably have to rectify it.

An indisputable truth is that if you make a correction in your taxes, the IRS could have more questions and will investigate more, which could lead to an undesirable audit. Of course, the need to correct your taxes may be necessary, both, to add more income or to claim expenses, which weren´t available when you filed the report so you couldn’t claim it. This situation happened to a trucker friend, who made his original tax return and did not report most of his transportation business expenses by not having them available. His tax return showed a debt of about $200,000. According to our trucker friend he did this report this way by the advice of an IRS agent, who said that there was no problem in it, and that he could rectify the report without any problem. Therefore, our friend made the correction, as suggested by the IRS agent. However, the IRS does not accept this correction before the original debt of $200,000 is paid.

Section 250.165 of the IRS states that a taxpayer can submit a corrected tax report to rectify a report sent to the IRS. Generally, to claim credits or reimbursement, a taxpayer can file IRS a corrected report within:

1. Three years after the date on which the taxpayer submitted his report to the IRS; or

2. Two years after the date of having paid their taxes.

Also section 1.6664- (c)(2)(3)(i) of the Internal Revenue Handbook does indicate, as a general rule, that a qualified corrected report is the one made after the date the original was presented. In other words, a tax report that was made before April 15 and that its correction is sent after April 15 and not later than three years after the original was sent to the IRS.


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