skip to content

What happens if there are errors in the income tax return at the Internal Revenue Service?

Errors in the income tax return

It is quite common to make errors in the income tax return because it is a complicated process that requires rigorous handling. However, for Hacienda, making these mistakes can imply a penalty for you. If you want to know how tax return errors affect you and what possible penalties you can get for making a mistake, stay with us until the end of this article and don’t miss any details!

What happens if I make a mistake in my income tax return?

If you make a mistake when filing your income tax return, you should not let yourself be overwhelmed by stress, because the Treasury offers you different solutions. After all, thousands of people go through this same problem every year.

In fact, the Tax Agency emphasizes the importance of modifying the income tax return, even if it is late, before filing it with errors or incorrect information. This is because, if they are filed in this way, you may receive a fine or other type of penalty depending on the case.

Having said that, it is important that you know, in addition, when the mistake favors you or the Tax Agency, because depending on this you will have to do one or the other. We tell you about it below!

What if the error favors you?

If the error made favors you, the income tax return will be refunded and not paid.

In these cases, the most advisable thing to do is to file a supplementary return, which consists of completing a return almost from scratch and modifying the erroneous data.

In order to file this supplementary return, you must enter the Renta Web system and access the section “Draft / return processing service (Renta WEB).

There, you must identify yourself as if you were filing your income tax return for the first time. That is, you must present your digital certificate, electronic ID, Cl@ve or your personal data.

Finally, choose the option “Modify a declaration” and indicate the reason. Complete the changes you think necessary.

What happens if the error favors the IRS?

These cases usually occur when you end up overpaying money to the IRS or if you are refunded less than the amount due. In these cases, you will have to file a claim for a refund of undue income.

This can be obtained through the Hacienda’s electronic headquarters, although you also have the option of doing it from a Tax Agency office. Once you submit the application, the Tax Authorities will study your case and will return the money if applicable.

You may also be interested in: VAT rates in Spain: updates 2022

What happens if you file errors in your tax return with the Internal Revenue Service?

If for any reason you make mistakes in your income tax return, you could face different penalties, since the Tax Agency punishes this situation as if it were the same as tax fraud.

For that reason, not paying your rent correctly and not giving importance to it can mean a great disbursement on your part, which will affect your economy or that of your company.

What happens if you submit erroneous deductions or wrong documents?

Many times, deductions help you to get a favorable result. But, if you make mistakes on your income tax return, these same deductions can be the cause of a large penalty. 

This is because, for the Tax Agency, it is considered a very serious infraction to omit important data or to include wrong information. As a consequence, you may receive a penalty that is usually 15% and a fine of 300 euros.

Also, the level of your infraction will be evaluated in case of using a fraudulent method or submitting false documentation. If not resolved positively, you may lose any public aid, subsidy or even be suspended as a professional.

Why is it important to communicate if there is an error in your income tax return?

It is essential to report errors in the income tax return because you can avoid receiving, as a taxpayer, a settlement proposal with different surcharges. These surcharges can be around 5% in certain cases and, in addition, they allow you to avoid penalties from the Tax Authorities.

Therefore, if you realize that there were errors in the income tax return, it is very important that you communicate it directly to the Tax Agency. This is because you are exposed to many of the consequences we have already mentioned. Everything will depend, ultimately, if the error is on the part of Hacienda or your fault.

You may also be interested in: Taxes in Spain for Foreigners

What should you do if you make a mistake on your income tax return?

If the error is made by you as the taxpayer, which is quite common, you must request a rectification of the self-assessment at any time after filing the original return.

But, what can be considered an error? Well, you can enter a deduction lower than the real one or forget to include a donation that entitles you to a refund higher than the one reflected in the withholding. These are just a couple of examples.

However, the rectification of the self-assessment is a process that can be done within 4 years, which, as you can see, is quite a long time.

What happens if the IRS processes your tax return incorrectly?

If Hacienda processes your tax return incorrectly, the first thing you should do is file a claim with the Tax Agency to have the error corrected. 

This can be done through a letter addressed to the corresponding Tax Office or through the electronic form available at the electronic headquarters of the Tax Agency.

If the claim is not enough to solve the problem, you can file a self-assessment rectification request with the Tax Agency. This request allows you to review errors in the self-assessment of the income tax return and request a refund of the corresponding amounts.

In any case, it is advisable that you consult with a tax advisor or a lawyer specialized in tax law. If you contact us at our experts in tax law will be able to advise you throughout the process and help you defend your rights before the Tax Administration.

5 steps to modify the income tax return already filed

The difficulty of modifying errors in the income tax return will depend on the case that applies, since the procedures are different. It may be that the error is made by the Treasury, or by yourself, damaging the Treasury; or, simply, it may be that you have not declared having the responsibility to do so. 

The steps you must follow to modify your tax return are as follows:

Errors in the income tax return

What should you do if you have not filed your personal income tax return?

If you missed the deadline to file your income tax return or if you are obliged to file your income tax return and you did not know it, do not wait for the Treasury to send you a claim. Well, you have the possibility to file your tax return after the deadline and, moreover, you can do it if you follow the same procedure as when you file your tax return within the deadline.

In this way, you will be able to avoid any type of penalties or problems with the Tax Agency.

You may also be interested in: What are the penalties imposed by the Tax Agency?

To learn more about how tax return errors can affect you, just contact us through our email We have the best team of legal and tax advisors who can give you the information you need and much more. 

Don’t miss the opportunity to keep your economy healthy and contact us. In addition, you will get totally free advice.

Find here

The content you need

to set up your business in Spain.

¿What did you think of this content?

0 0 votes
Article Rating

Your email address will not be published .

Required fields are marked with *


Inline Feedbacks
View all comments