Even if you take great care in preparing your Federal income tax return, you may realize that some of the information you provided was missing or incorrect after you have filed. Because mistakes and omissions can sometimes occur, the IRS allows taxpayers to amend their tax returns (and to claim any additional tax breaks or tax refunds).
If you have filed your taxes for the most recent year but you forgot to report some income on your 1040 or just received a corrected Form 1099 or K-1 in the mail, you will need to file an amended income tax return to correct the income reported.
In general, the IRS expects all the information you provide on your (initial) tax return to be accurate and complete when you file it. Therefore, the IRS is unlikely to hold you responsible for information that did not come to light until after you filed your initial return. Nonetheless, you should still consider submitting an amended return, especially if doing so may reduce your tax liability and/or increase your tax refund.
Here are a few tips for amending a tax return:
- If you know your return was inaccurate when you filed, you should amend it to make it accurate without delay. You need to be proactive—make the correction before the IRS finds your error.
- If you amend, you must correct all errors, not just the ones that decrease your tax liability or increase your refund.
- Some errors do not merit amending. Math errors are not a reason to amend since the IRS will correct math errors on your tax return.
- Certain parts of your original return cannot be changed by filing an amended return. For example, you can change your filing status on an amended return from married filing separate to joint, or from qualifying widow(er) to head of household status. However, you cannot change from married filing joint to married filing separate after the due date for the original return (usually April 15) has passed.
- Timing counts. You must file a Form 1040X, Amended U.S. Individual Income Tax Return, within three years from the date you filed your original return or within two years from the date you paid the tax, whichever is later. This either/or test can give you extra time, but it is safer to amend within three years of your original return so there is no dispute.
- Only paper will do. Amended returns are only filed on paper, so even if you filed your original return electronically, you will have to amend on paper. Amended returns are prepared on Form 1040X. You must use this form whether you previously filed Form 1040, 1040A or 1040EZ. Label the top of the 1040X very clearly with the tax year you are amending.
If you have any questions or need assistance in amending a tax return, please feel free to contact JV LAW GROUP at (714) 752-3270.
