What You Need to Know Before Filing an Amended Return

If you forgot to claim a tax relief or overstated your tax bill on a tax return, you may need to file an amendment so as to avoid paying more taxes. You may also need to file an amendment even for errors that place you at an advantage as some errors may result in civil or criminal liabilities. Below is important information that you may need before filing such an amended tax return:

Filing an Amendment is not a Requirement

If you have made an error on your tax return form return4refund and discover this after you have filed, you are not obligated to file an amendment. However, depending on the nature of the error, it may be advisable to file a return. If you receive a tax related document after you have filed a return that reveals amounts included in your return as being wrong, you are at no obligation to file an amendment if you were unaware of such amounts when filing the return. However, if filing such an amendment will place you at an advantage, then it may be advisable to file a return.

For mathematical errors or misquoting amounts from the W2 or 1099 forms, the IRS will make corrections once they receive a copy of the forms. The IRS will also send you a notification for such corrections made. If a tax liability arises from the correction, the amount will be included in your statement. Penalties and interest may apply on the adjusted amount.

Amendments are Manually Reviewed

An amendment of an erroneous tax return is done on Form 1040X. This amendment form is manually reviewed by an IRS staff. Manual reviewed tax return forms are at a higher risk of being audited and therefore, ensure that all information provided in the return is accurate and that you have supporting documentation for all entries – in case of an audit.

Amendments Delay Tax Refunds

You also need to be aware that filing an amendment will significantly delay your tax returns. If your amendment will increase the amount of refund, it may be advisable to file the amendment after you have received the refund check from the original return. This way, you will only need to wait for a refund for the incremental amount as opposed to waiting for the whole refund amount.

In Case You Forgot to Sign

In case you forgot to sign on your tax return form, the return will be void. Therefore, as opposed to filing an amendment, you can simply sign and resubmit a copy of the tax return filed.

Time Limitation

If you plan to file an amendment, you will need to do so before 3 years lapse from the time of filing the original return. Once 3 years are past, the IRS will not accept such an amendment.

Rob L Daniel and partners of Limon Whitaker & Morgan, for years have helped businesses and individuals Nationwide, with their delinquent IRS & State tax problems. The firm is based in Los Angeles, California USA. [http://www.limonwhitaker.com] / Tel:888.321.6188

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