Tax preparation can be a tedious process, involving scores of documents, financial and investment statements and additional credit- or deduction-related forms. Given the large amount of necessary information, sometimes confusing tax codes and ever-changing rules and regulations, it's easy to make small mistakes.
Tax law dictates that upon discovering an omission or error regarding an understatement of income or overstatement of deductions, filers should amend their returns, however they are under no legal obligation to do so, the Journal of Accountancy reports. Despite the ruling, taxpayers should consider amending their information to avoid an audit or other type of action.
Failure to correct false information could lead to fines or penalties from the Internal Revenue Service.
To avoid inadvertently providing false information to the IRS, individuals should maintain an organized file of their tax documents they will need during filing season in one centralized location. Those with a large amount of assets or who are benefiting from new credits or deductions should consider consulting a tax preparer who may be more familiar with tax code.
Every effort has been taken to provide the most accurate and honest analysis of the tax information provided in this blog. Please use your discretion before making any decisions based on the information provided. This blog is not intended to be a substitute for seeking professional tax advice based on your individual needs.