Need to File An Amended Tax Return?

Need to File An Amended Tax Return?

Did you forget about a deductible expense on your tax return or an expense that would qualify for a tax credit?  Did you receive an unexpected or amended K-1 from a partnership, S-corp, trust or estate?

These are just a few examples of overlooked income or deductions that you may have forgotten on your tax return whether it was for the 2014 return or even prior year returns.

If you are considering whether to file an amended return (Form 1040X) or even a state income tax return, we recommend reviewing the following points:

  1. Refunds generally won’t be paid for returns if the three-year statute of limitations from the filing due date has expired. However, with the exception of amending a return to carry back a business net operating loss (NOL), the IRS will pay refunds only on returns from 2012 through 2014. Some states have a longer statute. The last day to file an amended 2012 return for a refund is April 15, 2016. IRS Form 1040X
  2. If you had a math error on the return you generally won’t have to file an amended return as the IRS or state agency will automatically make those corrections. The same would apply if you forgot to attach tax forms such as W-2s or schedules. The IRS or state agency will send a request asking for the missing forms.
  3. Wait until you have received the original refund before claiming an additional refund. The good news is that you may cash that check while waiting for any additional refund.
  4. Unfortunately, if you amend your return and owe additional taxes, you will be subject interest and penalty charges.
  5. If you are amending multiple returns, remember to always send them in separate envelopes so they are mistaken for a single return.
  6. If the changes involve another schedule or form, it must be completed and included with the amended return. In addition, it may be appropriate to include documentation to avoid subsequent correspondence from the IRS or state agency.
  7. Always attach a detailed explanation of the changes in order to explain the reason for the amendment. An insufficient explanation can lead to additional correspondence and delays.
  8. Depending on why you file an amended federal return, you may be required to amend your state return. However, if the federal amendment is filed to claim or correct a tax credit that the state does not have, no state amended return will likely need to be filed. In most other circumstances, you will need to amend the state return as well as the federal.

Please contact our office for assistance in preparing your amended returns as they can be more complicated that your original tax return.

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