Occasionally mistakes are made as we file
our tax returns each year. If there are simple mathematical errors, the
IRS will usually correct them and send correspondence indicating the
changes. However, in cases where income was left out or there are
changes to your filing status or claimable credits, you should amend
your return to avoid penalties.
FORMS AND DUE DATES
Amended tax returns are filed with form
1040X, and can cover any previously filed 1040, 1040EZ, 1040A, or
1040NR. The 1040X includes columns to itemize changes to the original
return, and allows for explanations of the changes if needed. If your
changes affect any of the schedules attached to the original return, you
will need to attach the schedules to the 1040X as well to better
illustrate the alterations. If you're amending multiple years, you'll
need to include a separate 1040X for each.
If You're Due a Refund
Note that if you're making changes that
either enable you to receive a refund or increase the previous refund,
you must file the 1040X within three years of filing the original return
OR two years of paying the tax-whichever comes later. If you filed an
original return that claimed a refund and plan to amend the return to
increase the refund, you must wait until you've actually received the
refund to send the amended tax return.
If You Have a Balance Due
And it's before April 15th
In cases where amending your return
will increase the owed tax, you must file the amended return with the
additional payment by April 15th. This way you'll stay current and avoid
penalties. The big advantage to filing early is that you allow yourself
the time to amend or deal with changes as needed and still meet the
April 15th deadline.
And it's after April 15th
Filing an amended return after
that same tax season's April 15 deadline will result in penalties and
interest being assessed from the 15th to the date the additional tax is
paid. Filing the amended return quickly after the deadline may avoid
some of the accuracy-related penalties.
It is recommended that you use a tax
professional to prepare all returns-especially amended ones-to ensure
quick turn around and accurate filing.
Why would you want to file an
amended return that increases your tax liability? Honesty is the
best policy when income is omitted. Filing an amended return to indicate
the proper changes can save time and penalties later, as failing to do
so can inspire an
IRS audit. If you are audited it can be many months before the
matter is resolved-not to mention you'll be assessed the additional
liability along with penalties and interest.
FILING OPTIONS
Unfortunately amended returns cannot be
filed electronically, so you'll need to mail the return to the service
center used for your original return. You can expect processing of your
1040X in 12 weeks; sometimes quicker but occasionally up to 16 weeks.
For further reading on federal amended
returns:
IRS Tax Penalties & Interest: Late
Filing -
Click Here.
