Made a mistake on your Portuguese IRS tax return? Don’t worry – it is possible to correct certain errors after submitting your return.
Correcting any mistakes as soon as possible is important, as it can help you avoid penalties, which may be substantial in some cases.
In this article, we will explain how to correct errors on your IRS return and minimize the risk of fines.
Errors on your IRS: How to correct them and avoid Penalties
The annual IRS filing period begins on 1 April, and many taxpayers receive their tax refunds shortly after submitting their returns.
Although filing an IRS return is an annual obligation, many taxpayers still have questions about how to complete the different annexes correctly.
As a result, it is not uncommon for tax returns to be submitted with errors, which may lead to penalties if they are not corrected.
In many cases, these mistakes are only discovered after the return has been submitted. Fortunately, it is still possible to correct them and, in many situations, avoid significant fines.
- Filling an Amended Tax Return
If you discover an error after submitting your IRS return, you can correct it by filing an amended tax return (declaração de substituição).
The sooner the mistake is corrected, the better. The longer you wait, the greater is the possibility of incurring penalties.
The consequences depend on when the error is identified.
1 – Error detected within the legal filing deadline
If you identify the mistake before the official filing deadline has expired, you simply need to submit an amended return within that period.
In this case, no penalty will normally apply.
2 – Error detected after the filing deadline
If the error is corrected within 30 days after the official filing deadline, you may be subject to a reduced administrative fine of 46,87 €.
If the correction is made more than 30 days after the deadline, the reduced fine increases to 93,75 €.
Please note that these reduced amounts only apply if payment is made within 15 days of notification.
If payment is not made within this period, the taxpayer loses the right to the reduced penalty and may instead face fines ranging from 375 € to 22,500 €, depending on the circumstances.
How to Submit na Amended Tax Return
Once you have submitted your IRS return, you can usually check its processing status within 48 hours.
If you identify an error, you should access the Portuguese Tax Authority’s online portal (Portal das Finanças) and select the option to correct the return.
The system will generate an amended tax return that is already pre-filled with the information from your original submission.
You simply need to review the return, make the necessary corrections, and submit it again.
What happens if you do not correct the Errors?
If you fail to correct errors on your IRS return and they are later identified by the Portuguese Tax and Customs Authority (Autoridade Tributária e Aduaneira), the consequences can be more serious.
The Tax Authority may consider the omission or incorrect information to be deliberate, particularly if it believes there was an intention to mislead the tax authorities.
In these situations, you may lose the right to the reduced penalty and become liable for fines ranging from €375 to €22,500, depending on the nature and seriousness of the infringement.
For this reason, it is essential to carefully review your tax return before submission and to correct any errors as soon as they are identified.
If you are unsure how to amend your return or need assistance with your tax obligations, it is advisable to consult a certified accountant, through this link. This professional can help ensure your return is completed accurately and in compliance with Portuguese tax legislation.