If, like many Americans, you rushed to file your tax return before the April 15th deadline, you may have overlooked some tax savings opportunities. It’s not too late to reclaim legitimate deductions that you missed. You can file an amended return using IRS Form 1040X and receive a refund of any taxes you overpaid. Returns filed up to three years ago can be amended on Form 1040X.
You can have a tax professional reexamine your tax year 2014 return to look for potential mistakes. Chances are, they’ll find a few. Due to the ungraspable complexity of the tax code, most returns (including those prepared by tax pros) contain errors and/or missed opportunities.
Now that tax filing season is over, tax accountants are less busy and may be able to provide a more thorough review than the one you got when you originally filed.
Low Morale at IRS: Beware of Aggrieved Agents
It’s possible you may need to file an amended return because you understated your tax liability. You could decide instead to wait and see if the IRS discovers the error and sends you a bill. But depending on the circumstances that may not be advisable. By filing an amended return and coughing up the extra tax money, you’ll avoid additional interest and penalties the IRS could hit you with down the road.
Even though audit rates of individual taxpayers are expected to be down this year due to budgetary constraints at the IRS, the agency isn’t going easy on taxpayers. In fact, it’s short-circuiting due process in many cases in the name of cost efficiency.
IRS officials claim they need a bigger budget. If only the agency had more money and more agents, it would respect taxpayer rights? It would be nicer and less abusive? Here’s hoping Congress doesn’t buy into that twisted logic.