Can you go to jail for making a mistake on your taxes?

Making an honest mistake on your tax return will not land you in prison. You can only go to jail if criminal charges are filed against you, and you are prosecuted and sentenced in a criminal proceeding. The most common tax crimes are tax fraud and tax evasion.

What is the penalty for making a mistake on taxes?

A careless mistake on your tax return might tack on a 20% penalty to your tax bill. While not good, this sure beats the cost of tax fraud — a 75% civil penalty. The line between negligence and fraud is not always clear, however, even to the IRS and the courts.

Can you fix tax return mistakes?

If you want to make changes after the original tax return has been filed, you must file an amended tax return using a special form called the 1040X, entering the corrected information and explaining why you are changing what was reported on your original return. You don’t have to redo your entire return, either.

What happens if you make an honest mistake on your taxes?

If you make an honest mistake, then you typically won’t find yourself in any real big trouble. You do have to correct your mistake, and it could still cost you. Just because it was an honest mistake, that doesn’t mean the IRS will forgive you. If you owe more money than you paid, then you will need to pay that amount.

What to do if the IRS makes a mistake?

Call or Visit the IRS. Fixing the mistake could be as simple as calling the IRS and explaining the problem, or visiting a taxpayer assistance center near you to discuss the issue.

What happens when your tax preparer makes a mistake?

If your tax professional makes mistakes when preparing your return, you have a finite amount of time to act in order to remedy the situation. In most instances, the statute of limitations is three years for errors that caused you to pay too much to the IRS.

What if the IRS makes a mistake?

If the mistake was made on the IRS’s part, clearly state the error and provide documentation to prove what you filed was accurate. For example, if your employer sent the IRS two versions of your W-2, the IRS may mistakenly double your earnings, which means doubled the taxes.

Is getting a tax refund a mistake?

Most tax refund interest payments will be made by direct deposit, but some will be by paper check. If you get a tiny surprise payment from the Internal Revenue Service and you’re wondering what it is, it’s probably an interest payment and not a mistake.