What to do if your 2015 tax return information needs to be revised

kid understandingTax day has come and gone.  You’ve filed your tax return, and you can relax knowing you won’t have the daunting task of organizing your tax information for another year!  Just when you’re ready to file everything away and go celebrate with your tax refund (hopefully), you receive a corrected brokerage statement in the mail letting you know that you received more investment income in 2015 than what was originally reported to you.  Now what?

It is very common for taxpayers to realize that the information as reported on their original tax return needs to be revised, whether it’s due to mathematical errors, corrected tax forms received in the mail, or tax information sitting in your drawer that you forgot to give to your CPA.  Regardless of the reason, it can be frustrating to find that your tax year isn’t totally closed.

There are a couple of options in these situations:

  1. Do nothing and wait for an IRS notice.  If there is tax due, you will just need to agree to the changes upon receiving the notice and send in a payment.  If there’s a refund due to you, the IRS will typically send a notice followed by a refund check a few weeks later.  (Disclaimer: it’s not uncommon for IRS notices to be incorrect, so please review the notice for accuracy or contact us.)
  2. The other option is to file an amended tax return with the revised information.  This way you could be proactive and not have to wonder when or if that IRS notice will come in the mail.

There are pro’s and con’s to each option, and each individual’s situation may vary.  Either way, it would be helpful to know if you owe additional tax or if you are due money back, so you can plan accordingly.  (That trip up north you were planning might turn into a trip to Europe if you have more money coming back to you!)  That’s where we can help.  We will review the new information and help you determine which option may be best for you.  If you have any questions, just give us a call, and we would be happy to help!