Don't take chances and ignore mistakes on your income taxes. Interest on taxes due starts accruing after the April deadline, so use Form 1040X to amend your errors as soon as possible. Take this quiz and calculate how much you know about filing income tax amendments.
Which of the following is a reason to file a 1040X?
changing filing status
reporting additional income
Does the IRS examine the 1040X more than a regular 1040?
There is evidence the IRS has a higher audit rate on 1040X filings.
There is no evidence the IRS has a higher audit rate on 1040X filings.
The IRS audits 1040X forms at double the rate of regular 1040 forms.
What is the purpose of Form 1040X?
to amend incorrect information
to increase withholding
to decrease withholding
When does interest start accruing on unpaid taxes?
before the filing deadline
after the filing deadline
What should you do if you made a math error on your 1040?
Do not file 1040X.
If you were filing by the April 2008 deadline, for what tax year were you filing a return?
How can you file a 1040X?
How long can I wait to file an amended 1040?
You just found a misplaced W-2. Why shouldn't you just ignore this extra income?
illegal to evade taxes
interest and penalties
Where should you explain why an error occurred?
attach to 1040X
on the 1040X
If you owe additional taxes on the 1040X, when should you send in the money?
Mail the check with the 1040X.
Mail the check by the three-year deadline.
Mail the check by year's end.
If the changes on 1040X will affect the calculations on another form, what should I do?
You should file the 1040X only.
You should file 1040X and any other affected forms.
You should file the affected forms only.
If you increase the amount of your itemized deductions, you will need to file 1040X and what other form?
What will happen if the IRS needs more information about my amendments?
The IRS will contact you with a request for more information.
You will be audited.
You must follow up with the IRS.
Where can you get a 1040X form?
with your filing package
What celebrity was convicted of tax fraud?
What should you do if you filed your taxes by the deadline and one month later you get W-2 form?
Pay additional taxes due.
What is the purpose of 1040X?
amends math errors
Does the IRS keep track of W-2s?
The IRS has no information on wages.
Businesses are required to report wages paid.
Business report only independent contractor wages.
Does the IRS keep track of payments to independent contractors?
Businesses report all independent contract wages.
Business sometimes report wages paid.
Businesses do not report independent contractor wages.