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Guiding You Through The Legal Process

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Handling tax return errors

On Behalf of | May 5, 2016 | IRS Issues

When Georgia residents make a mistake when filing their tax returns, it does not automatically mean that they will be audited. Depending on the type of error made and what attempts are made to resolve it, the matter may simply involve dealing with some paperwork.

One common and easy to resolve an error is if a person reports an income that does not match the information provided to the IRS on a tax return. In these cases, the IRS will normally send the taxpayer a notification of the problem and present an amended tax liability. People can chose to pay the new amount and the matter will be settled.

However, if people do not pay what they owe or they have made another significant mistake, an audit may be possible. Individuals who claim the Earned Income Tax Credit may be more liable to be audited since this credit is frequently abused, and those with higher incomes are audited more frequently. Therefore, it is important for individuals to be scrupulous about their returns if they fall into one of these categories.

Although it for the most part happens only in cases of significant abuse and even then only after other methods of collection have been taken to no avail, the IRS has the authority to issue a wage levy. When this happens, a significant percentage of a person’s paycheck could be withheld and sent directly to the IRS. In such an event, a taxpayer may want to meet with an attorney to see if another way of settling the matter is available.