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Amend Tax Return

It’s 2:03am and you dissertation discover an error affordable papers on your income tax calculations. What do you do? Should you amend your tax return? It begins to haunt you through the next day amend tax return … amend tax return? But, what holds you back is that the Internal Revenue Service may open up an audit against you because you filed the new information. Is it worth it? But wait, how are you so sure it will cost you money. You may discover after running the numbers that you get an additional tax break. So yes, it is worth it to review any additional information you find that should have been submitted with your original tax return. Of course, if you are still in doubt on how to proceed seek professional tax advice.

If you discover an error after you file your return that is math related or you left out certain schedules the IRS may correct the return for you. On the other hand, if you changed your filing status, income, deductions, or credits then you may need to file an amended return.

If you already filed your return but the due date for filing the return has not passed then you can file your amended return by the due date for that year (without regard to any extension of time to file) to avoid penalties and interest. If the due date falls on a Saturday, Sunday, or legal holiday, filing the form and paying the tax will be timely if filed or paid the next business day.

Remember once you have dropped your original income tax return in the mailbox or sent it off electronically, you can no longer change that return. One exception is if your e-filed return is rejected, you can make changes before submitting it again. Also, any changes to your federal tax return to the IRS may change your state tax liabilities. This means that you could possibly owe or get a refund on your state taxes based on the changes shown on your amended tax return.

Be aware that you have three years to make any corrections that result in additional tax refunds. That’s because there’s a three-year statute of limitations on issuing tax refund checks. This three-year period is measured from the date you filed your original tax return. If you filed your return before April 15th, the three-year period begins from April 15th. If you requested an extension, the three-year period runs from October 15th (Internal Revenue Code section 6511(b)(2)(A)).

If you are beyond the three-year period, you can only receive refunds for overpaid taxes that were actually paid during the previous two years.

Here are some points the IRS wants you to know about amending your federal income tax return.

  • Use Form 1040X, Amended U.S. Individual Income Tax Return, to file an amended income tax return.
  • Use Form 1040X to correct previously filed Forms 1040, 1040A or 1040EZ. An amended return cannot be filed electronically, thus you must file it by paper.
  • Generally, you do not need to file an amended return due to math errors. The IRS will automatically make that correction. 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.
  • Be sure to enter the year of the return you are amending at the top of Form 1040X. Generally, you must file Form 1040X within three years from the date you filed your original return or within two years from the date you paid the tax, whichever is later.
  • If you are amending more than one tax return, prepare a 1040X for each return and mail them in separate envelopes to the appropriate IRS campus. The 1040X instructions list the addresses for the campuses.
  • If the changes involve another schedule or form, you must attach that schedule or form to the amended return.
  • If you are filing to claim an additional refund, wait until you have received your original refund before filing Form 1040X. You may cash that check while waiting for any additional refund.
  • If you owe additional 2010 tax, file Form 1040X and pay the tax before the due date to limit interest and penalty charges that could accrue on your account. Interest is charged on any tax not paid by the due date of the original return, without regard to extensions.
  • Your state tax liability may be affected by a change made on your federal return. For information on how to correct your state tax return, contact your state tax agency.