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A mistake on your tax return? You Still Have Time to Modify the Return

Post Highlights

• Forgotten or Reported Information

• Three-Year Statute for Refund

• Multiple Adjustments

• Changing the State Return Once your tax return has been submitted, you can make changes if you realize you left something off.

There may be a variety of problems that require amending:

• Getting a K-1 unexpectedly or revised from an S-corporation, trust, estate, or partnership.

• Ignoring a source of income or receiving 1099 that has been delayed or rectified.

• Ignoring a deductible expenditure.

• Ignoring a cost that would be eligible for a tax credit.

These are just a few of the numerous explanations why people might need to revise their returns, whether they are for the recently filed 2021 return or earlier returns. When deciding whether to submit an updated federal income tax return (Form 1040X) or state income tax return, keep the following things in mind.

1. If you are asking for a refund, be advised that refunds are normally not issued for returns if the three-year statute of limitations from the filing due date has expired. The statute of limitations for the 2021 return, will normally expire on the 2025 April filing deadline. Some states have a longer statute. 

2. In most cases, you do not have to file an amended return to fix math mistakes. Corrections will be made automatically by the IRS or a state agency. Also, do not file an updated return if you failed to include tax paperwork such W-2s or schedules. The IRS or a state agency will issue a letter requesting the missing forms.

3. If you are claiming an extra return, we recommend that you wait until you have received your original refund before submitting Form 1040X.

4. If you owe more tax, file Form 1040X as soon as possible and pay the tax to avoid interest and penalties on your account. Without respect for extensions, interest is assessed on any tax which are not paid by the due date of the initial return. 5. Send each amended return in its own envelope when modifying multiple paper-filed returns. The extra returns filed in the same envelope may not be processed since they are frequently mixed up with one another when filed together.

6. A new schedule or form that wasn't included in the first return must be completed and included to the modified return if the modifications call for it. Additionally, any modified forms must be supplied. To prevent further contact from the IRS or a state agency, it could also be helpful to submit proof of the changes made in the returns.

7. The adjustments also require full justification. This is necessary to communicate the rationale behind the alteration to the government's processing employees. An inadequate justification may result in further communication and delays.

8. It could be essential to change your state return depending on the reason an amended federal return is necessary. However, no state amended return will probably need to be completed if the federal amendment is submitted to claim or rectify a tax benefit that the state does not have. In most other cases, both the state and federal returns will need to be amended. Since amended return can be more challenging to complete than the original. Please get in touch with our office for help preparing your amended returns

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