How to correct an error in an individual entrepreneur’s tax return after filing

Did you file your tax return and then notice a mistake? Did you forget to include part of your income, mix up the reporting period, fail to attach Schedule 1, or make a mistake in the amount of the Unified Social Tax (UST)? Such errors happen even to experienced business owners and accountants who file returns regularly.

The key is not to rush into submitting a new report right away. The procedure for correction depends on two factors: whether the filing deadline has passed and whether the error affects the tax or social security contribution amount. In some cases, it is sufficient to file a “new” return; in others, a corrected one is required; and some errors do not need to be corrected at all.

In this article, we’ll explain how to identify the type of error, when you need to file a corrected return, whether fines are possible, and how to avoid such situations in the future.

What to do if you find an error after filing your tax return

If you discover an error after submitting your report, you should first determine exactly what your situation is.

Check the following:

1. Has the tax return been accepted (have you received Receipt №2)?
2. Has the filing deadline passed?
3. Does the error affect the amount of tax or social security contributions? For example, an individual entrepreneur accidentally omitted part of the income received from the return, indicated an incorrect income amount (an extra or missing zero), made a mistake when calculating the social security contribution base, or failed to report income on which tax was due. In such cases, the amount of tax liabilities or social security contributions payable changes.

The next steps depend on the answers to these questions.

Once you’ve assessed your situation, you can move on to the next step: figuring out exactly how to fix that specific type of error.

How to fix different types of errors

It is best to focus not on the type of declaration, but on the error itself.

Once that is done, you can move on to deciding which correction method to use: filing a “new return,” submitting an amended return, or making the correction in the next reporting period.

New tax return or amended tax return: what’s the difference?

The next step is to choose a method for correcting the error. In most cases, sole proprietors use one of two options:

• they file a “new” tax return;
• they file an amended tax return.

The choice depends on whether the filing deadline has passed.

🔸When to File a “New Amended” Tax Return

If the filing deadline has not yet passed, the simplest solution is to file a new tax return with the correct information.

For example, a sole proprietor in the third tax group filed a quarterly tax return on May 5, but a few days later realized that they had omitted part of their income. If the filing deadline has not yet passed, it is sufficient to prepare and file a “new” tax return.

The tax authority will consider the latest version of the document, and the previous one will be disregarded.

🔸When to file an amended tax return

If the filing deadline has already passed, you cannot correct the error using a “new” tax return.

In this case, a corrective return is used.

It is filed when it is necessary to change the figures in an already accepted return: the amount of income, tax, social security contributions, or other important data.

Before filing a corrective return, you should check whether the amount of tax liabilities changes. The possible consequences and the procedure for settling accounts with the tax authority depend on this.

What errors in individual entrepreneur reports do not need to be corrected

Not all errors in reports have the same consequences. If an inaccuracy does not affect taxes, the Unified Social Tax (UST), or the taxpayer’s identification, a correction is usually not required.

For example:

• a typo;
• an incorrect phone number;
• an error in the address;
• an extra character in a text field.

If you have any doubts, it is best to double-check the situation or consult with an accountant.

Will there be a penalty for an error in the tax return?

Whether a penalty is imposed depends not on the mere fact of the error, but on its impact on tax liabilities and the Unified Social Tax (UST).

If the error does not affect the amount of tax or UST, there are usually no penalties.

The situation is different when the error resulted in underreported tax liabilities or contributions. In such a case, after the correction, it may be necessary to pay additional tax, as well as other payments required by law.

At the same time, liability rules may vary depending on current regulations, particularly the special provisions in effect during martial law. Therefore, before filing an amended return, it is advisable to check the current requirements or consult with an accountant.

The main rule is simple: the sooner the error is detected and corrected, the lower the risks for the business owner.

Common mistakes when correcting tax returns

Sometimes problems arise not because of the error itself, but because of an incorrect correction.

Most often, sole proprietors:

• file an amended return instead of a “new return”;
• correct the wrong reporting period;
• forget to attach the required supporting documents;
• fail to check the receipt confirming acceptance of the return;
• submit corrections without checking whether the error affects taxes or social security contributions.

As a result, they have to resubmit documents and spend extra time communicating with the tax authority.

That is why, before making any corrections, it is important to first identify the type of error and choose the correct method for correcting it.

How to avoid mistakes in sole proprietor tax reporting

It is impossible to completely eliminate mistakes, but their number can be significantly reduced.

To do this, you should:

• check the data before submitting the tax return;
• use up-to-date reporting forms;
• monitor filing deadlines;
• keep all documents confirming income and expenses;
• review receipts after submitting reports.

If an entrepreneur operates in multiple business areas or works with large volumes of data, it is helpful to use services that automate the preparation and submission of reports.

How Vchasno.Zvit can help you avoid reporting errors

Reporting errors often arise not because of the complexity of the law, but due to human error: incorrect data, missed deadlines, or the use of outdated forms.

With Vchasno.Zvit, business owners and accountants can:

• prepare tax returns using the latest forms;
• monitor reporting deadlines;
• track the status of documents and receipts from the State Tax Service;
• manage multiple sole proprietorships in a single account;
• store all reporting documents in one place.

The service reduces the risk of errors even before a declaration is submitted, and entrepreneurs can respond more quickly if an inaccuracy does occur.