Because tax law is so complex, important tax credits or tax deductions are often missed when returns are completed by individuals who lack the professional knowledge and experience to determine which ones apply. A missed tax credit, a missed tax deduction, a change in filing status or an overlooked income adjustment will often result in a tax amount owed that is greater than it should be. That being the case, the filing of an amended tax return is sometimes the simplest and most cost effective way for a business to reduce an outstanding tax liability. An amended return can be filed within three years from the date of the original return or within two years from the date a tax was paid, whichever is later.
An amended return allows a business to correct a previously filed tax return when there would be a realized tax advantage in doing so. Some of the most common reasons for filing an amended tax return are listed below:
- Introduction of new tax information
- Errors or emissions
- Change in business structure or filing status
- Change in tax elections
- Carry back of losses
With so many potential credits and deductions, it is important to have a licensed tax professional review any tax returns in question in order to determine which ones may apply. The experienced tax professionals at BusinessTaxPreparation.com have a thorough understanding business tax law and a current knowledge of available credits and deductions. They will carefully examine all previously filed tax returns and file amended returns when necessary. The process of identifying available tax benefits that have not been utilized can often result in a significant reduction of the tax amount owed.