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To err is human, and only the divine do not have to pay taxes. Mistakes are inevitable, but penalties and other adverse consequences can be avoided with the help of a tax attorney. This article explains what to do when you realize you have made a mistake on your tax returns in Texas, including:
- What not to do when you realize you’ve made a mistake.
- How long it may take the IRS to process an amended tax return.
- The possible consequences of amending your Texas tax return after a mistake.
First, Do Not Panic When You Realize You Have Made A Tax Mistake
You might, understandably, feel rather panicked or afraid when it becomes clear you made a mistake on your tax return. You may feel like you are going up against the most terrifying agency in the federal arsenal, the IRS, and feel frightened if you are contacted by them or by a revenue officer. It can be especially frightening when the IRS shows up at your door.
Instead of panicking, reach out to an experienced tax law attorney, file an amendment with the correct information, and send it to the IRS or Texas state authority. The sooner you complete these steps, the sooner the mistake can be reviewed and resolved.
Should I Hire A Tax Attorney In Texas To Help Correct My Tax Return?
Simply re-filing or filing an amendment does not need to be scary, and you can feel free to contact an accountant to get help with your amendment. Tax attorneys (like myself) are generally tax planning attorneys or tax resolution attorneys, which is different from what is involved in the preparation of a tax return. That said, our office can help you find someone reliable and trustworthy to assist you.
My law firm generally steps in after things have gone wrong and significant back taxes are owed. We help clients work out agreements with the IRS so that their assets and income are not seized, or their bank accounts wiped out. As long as you do not panic and act quickly, even a big mistake is unlikely to lead to such a situation for you.
Attorney Lance Drury is a seasoned tax resolution lawyer who has helped countless families and businesses in Texas, Missouri and throughout the South deal with tax mistakes, debts and other complex tax situations. He has built a career and firm by standing up for ordinary folks facing government claims and harassment by tax authorities.
Struggling with taxes in Texas? Contact The Law Office Of Lance R. Drury today to schedule an initial consultation.
How Long Does It Take The IRS To Process An Amended Tax Return, And What Delays Should I Expect?
Once you have filed your amended tax return, the hardest part can sometimes be the wait. It generally takes two to three years for an amended return to be processed. Sometimes we can reach out and enlist the services of a taxpayer advocate to get the processing of those returns sped up, but most of the time, you just have to be ready for a fairly long wait.
The good news, however, is that simply filing the amended return can protect you from many of the consequences of your initial mistake.
Will Amending My Tax Return Increase My Chances Of An IRS Audit, And How Can I Minimize Risks?
Tax audits can be scary, and once the IRS gets started, they will locate every little mistake and oversight and charge you for them. As a result, you should amend your tax return before the IRS starts their audit, as this will certainly help avoid some of the penalties you might be facing.
That said, what you file, initially or in the amended return, does have an impact on the likelihood of an audit and its consequences. For example, if the numbers you have entered seem too large for certain business expenses or deductions, this could automatically trigger the grounds for an audit.
As a result, you must carefully watch what you file in your returns, avoid mistakes, and always have the documentation to prove everything in case you do get audited.
What To Do If You Fear A Tax Audit Due To An Error
As a general rule, the most important step to avoid or survive an audit is to document everything. If you don’t have the documentation to substantiate your claims, expenses, and deductions, the audit will not go well.
If you have a business, you also need to properly segregate your business account from your personal account. The IRS will not look favorably on you paying personal expenses out of a business account and may even assume you are paying yourself some money without withholding taxes.
As a result, keeping thoroughly segregated books and accounts is vital. You should have a separate bank account with only business income in it, which you use to pay out the business expenses, and a distinct personal account with your personal income, which you use to pay out your personal expenses.
Unfortunately, for many sole proprietors who only use one bank account, everything gets mixed up, often causing significant problems. These more complicated cases might require a tax attorney to solve, and such issues can be avoided by keeping good books and filing amendments if mistakes are made on your tax returns.
Have You Made A Tax Return Error? Facing An Audit Or Back Taxes You Cannot Pay? We Can Help.
For more information on amending your tax return in Texas, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling 573-883-3056 today.
