When Should I File an Amended Return?

Apr 26, 2013 By Nielsen Law Group In Taxation No Comment Tags : , , ,

If you’ve already filed a tax return and need to make corrections, you can file an amendment using Form 1040X if it’s a personal return or refile the return and select “amendment” if it’s a partnership or corporate return. But when should you file an amendment and what impact will it have? Here are a few things to know about amendments:

  1. An amended return cannot be e-filed. You must file it on paper.
  2. You should consider filing an amended tax return if there is a change in your filing status, income, deductions or credits.
  3. You normally do not need to file an amended return to correct math errors. The IRS will automatically make those changes for you. Also, do not file an amended return because you forgot to attach tax forms, such as W-2s or schedules. The IRS normally will send a request asking for those.
  4. Generally, you must file Form 1040X within three years from the date you filed your original tax return or within two years of the date you paid the tax, whichever is later. Be sure to enter the year of the return you are amending at the top of Form 1040X.
  5. If you are amending more than one tax return, prepare a 1040X for each return and mail them to the IRS in separate envelopes. You will find the appropriate IRS address to mail your return to in the Form 1040X instructions.
  6. If your changes involve the need for another schedule or form, you must attach that schedule or form to the amended return.
  7. If you are filing an amended tax return to claim an additional refund, wait until you have received your original tax refund before filing Form 1040X. Amended returns take up to 12 weeks to process. You may cash your original refund check while waiting for the additional refund.
  8. If you owe additional taxes with Form 1040X, file it and pay the tax as soon as possible to minimize interest and penalties.
  9. If the changes involve more than just a simple adjustment to your return, you may want to consider using a tax attorney or other professional to assist. Amendments handled improperly can often lead to unwanted scrutiny from the IRS.
  10. You can track the status of your amended tax return three weeks after you file with the IRS’s new tool called, ‘Where’s My Amended Return?’ The automated tool is available on IRS.gov. You can track the status of your amended return for the current year and up to three prior years.

By: Evan A. Nielsen, Esq. (Licensed in California)