Mistakes? They happen.
For many taxpayers, there is often a moment during their lives when they discover a mistake on their recently filed Form 1040 Individual Tax Return (1040). Anxiety kicks in. An error on an Individual Tax Return could result in a lower refund, or a possibility of added penalties or interest as a result of more tax due. These situations occur, and a 1040 can be corrected with the Form 1040-X, Amended U.S. Individual Income Tax Return (1040-X). To amend a tax return means a modification of the tax return to reflect the new data. There are instances where a taxpayer may need to file a Form 1040-X to correct an error, input an omission, or make a modification on their filed 1040. The Form 1040-X will report: original Form 1040 data, the new data for amendment, and the difference between the two data sets. However, whether a Form 1040-X should be completed, depends on the specifics of the taxpayer's circumstance.
Many times, the IRS may correct clerical or mathematical errors on a return and may accept returns without certain required schedules or forms, such as not attaching a W-2 stub. If the IRS finds it necessary, the IRS will typically mail a letter to the Taxpayer requesting supplementary information or forms. Normally, taxpayers do not need to file a Form 1040-X with the IRS for math errors on the original Form 1040 filed.
Taxpayers should amend their Form 1040 if a situation arises where the taxpayer was required to, or is not allowed to: report some income, claim non-applicable deductions or non-applicable credits, claim applicable credits or deductions, or claim a different filing status. Taxpayers must indicate the tax year of the original Form 1040 being amended, briefly explain the proposed changes being made, and include any attachments of new schedules or forms. If the taxpayer is amending for more than one tax year, each Form 1040-X, for its applicable tax or fiscal year, should be mailed in separate envelopes to avoid confusion for the IRS.
To claim a refund or a credit, the taxpayer must file the Form 1040-X inside three years from the filing date of the original tax return, or inside two years of when the tax due was paid. The taxpayer must choose whichever situation happened later. If the taxpayer knows additional tax will be due, the taxpayer must submit the Form 1040-X and pay as soon as possible to stop accruing added penalties and interest. For certain taxpayers, the Form 1040-X may also affect any filed State Individual Tax Return liability or refund. Once the IRS obtains the Form 1040-X, the filing may take up to three weeks to show up in their system, and 16 weeks to process the 1040-X.
For many taxpayers, amending an originally filed tax return can be daunting, and the procedures can be a burden or unclear. Fortunately, at ADKF, our firm specializes in handling these often-complex situations and providing solutions for our clientele. If you are a current client of our firm, please contact your service team to begin this process. If you are not yet a client of our firm, we would be delighted to conduct an initial consultation, as we are committed to providing the highest quality of service for your essential tax needs.
Contact us at: (210)-829-1300