Tax FAQ Series – Why is there an amendment fee? I just need to change one simple thing.
You know the situation – your return is prepared then you find (or someone sends you) one more piece of tax data that needs to go on your return. You contact us and find out there’s a FEE to amend the return. Seems like changing just one thing on the return shouldn’t cost anything and you want to know why!?!?
In many ways tax returns are like tapestries – intricately woven strands of multi-colored thread that result in a unique design. But move one thread just a few centimeters and the entire pattern is shifted. In order to get the pattern back, many (and sometimes all) of the other threads have to be altered as well.
The same thing happens when information on a tax return changes – one simple change often ripples through the return resulting in a number of other adjustments and modifications. And once the changes are made, a summary of all the adjustments also has to be provided to the IRS (and the state if that changed as well) showing them what was adjusted.
When we’re able to make the adjustments without disturbing much, we pass the savings on to you. But in almost every case, the ripple effect is extensive, and so is the work required to make the adjustment.
Getting the return right the first time is everyone’s objective. You doing your best to get us everything before we begin working on the return, us doing our best to reflect it accurately, and you confirming the return is accurate before it’s filed. But it’s a complex process so the possibility of errors always exists. So, when you find something you overlooked or get one last form after the return is filed, you’ll now have a better sense of what’s required to fix it.
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