Code 976 Duplicate Return Filed

LaPorte is one of the most preferred CPA and business advice companies where businesses across the United States can rely on. When there is a duplicate return filed, the company will attach TC 976 on the account to keep you updated on this. This can come in handy as a duplicate tax return is a strong indication of identity theft. After getting the code 976 duplicate return filed, make sure to contact the Internal Revenue Service for further investigation. 

When there is a strong indication of identity theft suspected by the Internal Revenue Service, or by the reports presented to the company, the account will be issued with the TC 971 AC 522 mark. 

How to prevent identity theft?

There are several measures you can take against identity theft. One of the most proven ways to protect identity is by purchasing an identity protection plan. Most insurance companies provide some sort of identity protection service. These services let you know when there is an attempt to open a new credit line or when your sensitive information like the Social Security Number is seen on the dark web. These kinds of measures make identity protection services very efficient and added with the other benefits such as alerts-they work effortlessly. 

Implications of Code 976

When a taxpayer’s filing includes multiple returns for the same tax year, several consequences may arise:

  1. Processing Delays: Duplicate returns require additional processing time, leading to potential delays in refund issuance or tax assessment.
  2. Increased Scrutiny: The IRS may scrutinize the taxpayer’s filings more closely to determine whether the duplication was intentional or accidental.
  3. Penalties and Interest: Depending on the circumstances, penalties and interest may be applied for inaccurate or intentionally duplicated returns.

What should I do if I accidentally file duplicate returns for the same tax year?

If you realize that you have submitted duplicate returns, you should contact the IRS immediately to rectify the situation. Ignoring the issue can lead to potential penalties and delays in processing.

Can duplicate returns be amended?

Yes, if you have filed duplicate returns and wish to correct the error, you can file an amended return. Include a clear explanation of the mistake and the corrections you are making.

What penalties can be imposed for filing duplicate returns?

Penalties for duplicate returns can vary based on the circumstances. They may include a fine based on the amount of tax owed and the intent behind the duplication.

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