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| *Ostroff, Fair and Company>>>United States Taxes |
I made a mistake on my taxes and got my refund back already. What should I do? |
I forgot to report a small amount of income(several hundred dollars) on my taxes. Should I just let it go? Or should I play it safe and tell them? Are there any penalties? Will the IRS hunt me down and imprison me if they catch this?What are the chances of them finding out? Need as much info. as possible. Thanks in advance. Even if you did nothing, the IRS would eventually contact you about the additional income. Your AGI would be higher than you claimed on your return, so they would correct your return and let you know where you stand based on the additonal income. It may be that you owe them money and if you do, they will let you know and you will have to pay them back. If you don't, then it is really just like a notice to let you know that your tax return has been changed. The same thing happened to us and we ended up owing a few hundred dollars because of it. The IRS gets all your copies of W2's and 1099's, so they will definitely catch it although it may take several months. They will not imprison you based on the discrepancy of a few hundred dollars---hopefully you did not do it deliberately to increase your refund. You can file an amended return right now since you know there is an error with your original return and make sure you mail it by April 17. That would be---as you say---playing it safe! You can file an amended return, and pay the difference due, or if additional refund is due, you will get a payment back. If you have a W-2 or a 1099 for this amount, the IRS could find it and audit your return, even though you have received your refund. Several hundred dollars will get found out by the IRS...They'll just make you pay it back... I would just call and talk to them......better you do it first. No, don't just let it go. File an amended return showing ALL of your income, and send a check for the extra taxes. If you do it before April 17, there won't be any penalties. If it was income reported to them, like on a 1099 or a W-2, chances of getting caught if you ignore this are approximately 100%, although it would probably be a few months to over a year before you hear from the IRS. No, you wouldn't be imprisoned for a few hundred dollars, but you'd have to pay the tax plus interest and possible penalties. |
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