What happens if taxes are filed wrong

But, if you are amending because you received a notice from the IRS, the amended return should go to the address indicated on the notice, and the notice should be referenced in the amended return. If you realize you need to correct something on your tax return, we can help. Take our quick assessment and find out if a tax return review is right for you.

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Jenna Bromberg Past Contributor. Is Tithing Tax Deductible? No matter how you file, Block has your back. File with a tax pro File online. Cancel Continue. Businessman with empty pockets with clipping paths. If you file an incorrect tax return, the IRS will not assess a penalty if it owes you a refund. You can even claim your refund late by filing an amended tax return within three years. If you owe the IRS money and you fail to pay because of inaccuracies on your tax return, however, the IRS may assess penalties and interest.

If inaccurate information on your tax return causes you to underpay your taxes, the IRS will assess a late payment penalty of 0. For penalty purposes, any part of a month counts as a full month -- one month plus one day late is counted as two months late.

The maximum penalty, however, is 25 percent of the amount overdue. Negligence penalties apply if you make an especially careless error on your tax return, if you recklessly disregard tax rules, or if you substantially understate your tax liability. This penalty amounts to 20 percent of the overdue amount, and can be added to any other penalties that may apply.

Civil fraud penalties apply if you intentionally attempt to deceive the IRS. Fraud normally involves a false statement or an attempt to conceal critical information. You can commit fraud, for example, by failing to report income from abroad because you thought the IRS would never discover it.

The IRS charges an interest rate for overdue taxes that is reassessed every quarter. For example, for the second quarter of , the rate was 3 percent above the federal short-term interest rate. Interest is compounded daily, and there is no maximum cumulative interest charge.

Like civil fraud, tax evasion requires a deliberate attempt at deception. Civil fraud can also be prosecuted as tax evasion.

If you deliberately overstate your deductions, for example, you might be prosecuted for tax evasion.