Underpay your 2023 taxes? Consider filing an amended tax return

Should you file an amended income tax return for 2023? Each situation should be decided on its own merits. But there’s a general consensus that you should file an amended return immediately if you owe more tax as a result of an omission or misstatement.

If you’ve underpaid your 2023 taxes, consider filing an amended return and paying any tax due. This means paying the difference you owe and interest dating back to the original due date. Strictly speaking, penalties may be due, but you might want to consider waiting to see if the IRS sends a notice assessing penalties, and then request abatement. Conversely, if you gamble that the IRS won’t detect the error, you could be asking for trouble. The penalties for an omission or falsehood can be significant. And the statute of limitations to audit your return is generally three years (six years if you underreported income by 25% or more — or unlimited time for outright fraud).

Get to know the “unusual” general business credit

Generally, tax credits are more valuable than tax deductions. Unlike a deduction, which reduces a business’s taxable income, a credit reduces its tax liability dollar for dollar. Tax credits aren’t unlimited, however. For businesses, the aggregate value of tax credits may be limited by the general business credit (GBC), found in Internal Revenue Code Section 38.

The GBC isn’t a tax credit in the usual sense. Rather, it’s a collection of dozens of business-related credits scattered throughout the tax code. It consists of more than 30 individual tax credits that provide incentives for various business activities. Each credit must be claimed separately, according to its specific rules and using the relevant tax forms. Taxpayers that claim more than one credit, however, must also file Form 3800 to report the aggregate value of those credits and calculate the overall allowable credit under the GBC.

Special estate planning required if an estate includes firearms

If you own one or more guns, careful estate planning is required to avoid running afoul of complex federal and state laws. Guns are unique among personal property because federal and state laws prohibit certain people from possessing firearms. Without proper planning, there’s a risk that the government will confiscate your guns or that the executor of your estate, your trustees or your beneficiaries will inadvertently commit a felony.

Given the complexity of federal and state gun laws, consider creating a gun trust. Appoint a trustee who has expertise on gun laws, safety and storage protocols.

© 2025