What if you've sent in your income tax return and then discover you made a mistake? You can make things right by filing an amended tax return using Form 1040-X.
There is no penalty for simply filing an amended return. But if your mistake caused you to underpay tax, you will owe that additional tax. If you amend your tax return before the April deadline and pay the remaining tax you owe, you won't have to pay a penalty.
Previous year amendments can be completed for free, but will need to be mailed in as the IRS does not accept e-filed returns for years that have passed. It does not cost anything to fill in and mail a tax amendment.
The IRS will correct the math error while processing the tax return and notify the taxpayer by mail.
The very fact that you filed an amended return will not, in and of itself, increase your chance of being audited. However, what you change and the magnitude of that change might trigger an audit.
4. Amended Returns. Amended returns will probably generate closer scrutiny by the IRS. Filing an amended return, particularly if it results in a significant decrease in tax, is almost guaranteed to get a second look by the IRS.
Filing an amended return isn't particularly difficult, but there are a few things you should know about the process before getting started. It also helps to be familiar with some common occurrences that can trigger the need for an amended return.
If you discover an H&R Block error on your return that entitles you to a larger refund (or smaller tax liability), we'll refund the tax prep fee for that return and file an amended return at no additional charge.
There is no additional fee to amend a tax return originally prepared using TurboTax unless the amended return requires an upgrade to the version originally used.
Yes, even if you've filed jointly for years, you can change your filing status to married filing separately on a new return whenever you wish. You won't pay a penalty for changing your filing status.
Typical amended return scenarios
You already paid the original amount due. You need to pay the difference. Pay or update your payment plan . If it's after the due date, you may need to pay interest and penalties.
If your return has an arithmetic error, there's no need to file an amended return. The IRS will usually correct it and send you a notice letting you know. But — you or your tax professional should confirm that the IRS changes are correct.
Step 1: Select the request type as Reprocess the Return. Step 2: With this option, you just need to submit the rectification request - Click Continue to submit the request. Step 3: On submission of your request, you will be taken to the e-Verification page. Note: Refer to the How to e-Verify user manual to learn more.
Share: Regarding filing an amended tax return, if you've already filed your return, you can't add another W-2 to your return. Instead, proceed by filing form 1040X to amend your return. Mail the completed 1040X to the IRS.
In cases of negligence or disregard of the rules or regulations, the accuracy-related penalty is 20% of the portion of the underpayment of tax that happened because of negligence or disregard.
If you need to make a change or adjustment on a return already filed, you can file an amended return. Use Form 1040-X, Amended U.S. Individual Income Tax Return, and follow the instructions.
Simple errors
Filing an amended tax return due to a minor error like a missed form (like a W-2 or 1099) will fall into the $200 - $400 range. This applies to straightforward cases where the CPA doesn't have to spend much time on the return.
Generally, H&R Block will not directly pay the deficiency tax owed due to mistakes on a tax return, as the taxpayer is ultimately responsible for the content of their tax return and any taxes owed. However, if H&R Block makes an error, they may cover penalties and interest resulting from that error.
When to file an amended return. Generally, to claim a refund, you must file an amended return within 3 years after the date you filed your original return or 2 years after the date you paid the tax, whichever is later. If you filed early, count from the April tax deadline.
An IRS notice may alert you to a mistake on your tax return or that it's being audited. You can verify the information that was processed by the IRS by viewing a transcript of the return to compare it to the return you may have signed or approved. You can access your tax records through your account.
Another easily avoidable audit red flag is rounding or estimating dollar amounts on your tax return. Say, for instance, you round $403 of tip income to $400, $847 of student loan interest to $850, and $97 of medical expenses to $100. The IRS is going to see all those nice round numbers and think you're making them up.
High income
As you'd expect, the higher your income, the more likely you will get attention from the IRS as the IRS typically targets people making $500,000 or more at higher-than-average rates.
The IRS has formally stated that audits do not automatically follow an amended tax return. If the amended return results in a significant change in your favor, and the circumstances surrounding the change seem suspicious, the IRS likely will start an audit.