What Happens When an E-File Tax Return has a Mistake?

         For the 2018 tax year, almost 94% of individual tax returns were filed electronically (E-File). From the point of view of the Internal Revenue Service (IRS), using E-File is faster, easier, and more accurate than paper tax returns. However, there is always a human element involved. So, what happens when a tax return is e-filed with a mistake.

          This was the subject of an IRS determination made late last year. This determination was the result of a mistake made by the person who signed a Partnership return. The IRS said that if this was the only mistake, the return is valid. The person was determined to be authorized, even though they did not sign it under their authority of Chief Financial Officer. The act of signing this tax return was enough.

          This brings up a common problem that comes up every Tax Season, once a tax return is e-filed it cannot be changed. Take some time to double check numbers and make sure dates have been placed next to signatures. An IRS determination is meant to be used as a learning example, not a legal precedent. If you make a mistake, it may not turn out so well. Scan the entire tax return to make sure there are no simple details that can make your E-File tax return invalid.

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