What If My Online Tax Program Makes a Mistake?
The Internal Revenue Service (IRS) estimates that in both 2015 and 2016, more than 90% of Americans filed their tax returns electronically, and surveys indicate that well over 40% used a digital tool to help them prepare each year. Have you ever wondered what the consequences would be if your online tax program made a mistake on your tax return?
The real truth is that these tax programs typically catch errors, not cause them. Errors on your tax returns are typically user error. As a result, you are held responsible for those errors. The most common filing errors include:
- Math miscalculations: Online tax software minimizes some calculation errors, but if you input an incorrect numeric value, the software tool cannot possibly know that there is an error. If you invert a set of numbers on your income, for example, that can really impact your tax return. The IRS will definitely follow up on a numeric inconsistency.
- Misspelled names or incorrect information: If you include your name (or that of your spouse) and it does not match exactly with the information the Social Security Office has on file, the IRS will automatically kick back your return or slow down the process.
- Forgetting to report additional income: If you did a small amount of work on the side, received a 1099 Form and forgot to report this income, the IRS will see this as a major red flag. No computer software tool can know whether you have entered all of the forms that you have received. Keep in mind that the IRS receives copies of each 1099 Form as well, so be vigilant when it comes to accurately reporting income.
- Incorrect direct deposit information: You must input your bank account information in order to receive a refund or to pay tax debt. So if you enter incomplete or incorrect bank information, the IRS will take notice, but the online software may not. It’s always good to triple check this information before submitting your return.
- Missing the deadline: Online tax programs cannot force you to file your taxes, so if you miss the April 15th deadline, this is also your responsibility.
Benefits of Partnering With an Experienced Tax Firm
While online tax software minimizes errors on your return, the return is only as accurate as the information that is entered into it. If you are uncomfortable with the idea that you could unknowingly make an error, you may be better off partnering with a full service tax firm that can take this burden off of your shoulders. Success Tax Relief has worked with taxpayers from all over the country to help solve problems, communicate with the IRS when necessary, and answer tax questions about unique and complex situations. Our team can sit down with you and review all of your tax documents to help you determine how best to proceed if you are the subject of an audit. No matter how big or small your tax issue is, our team can help provide you with clear communication, personalized service, and expert tax advice. For more information, call the Success Tax Relief team at 877-825-1179, or contact us online for a free consultation.