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Filing An Amended Tax Return With The IRS

Filing An Amended Tax Return With The IRS

There are some processes involved in filing an amended tax return with Uncle Sam. One needs to fill form 1040X and submit it to the IRS. Understanding the tax code is a pretty complicated endeavor with changes almost every year. As a result, small business owners could be guilty of mistakes on their income tax returns. 

Anyone with a mistake on their tax return, or should you be exposed to new information (realizing that you qualify for a tax credit) that requires amending your tax return, there is the provision to file an amended tax return, which furnished Uncle Sam about new info on your income. 


Simple Steps on How to File an Amended Tax Return 

To successfully file an amended tax return, one needs to file IRS Form 1040X and forward it with other supporting documents. Here are the tips: 

  1. Collate all Documents 

This involves your old tax return and other documents that can help support your claim. In filing the amended return, taxpayers must reference the original tax return.  If you have new documents relating to your amendments, like a W2 that just came along, you can send it as well.

  1. Collect Important Forms

All sections you want to amend will need new supporting forms, not a fresh overall tax return. You can access most of these tax forms that relate to what you want from the IRS website.

  1. Complete Form 1040X

From the IRS website as well, download Form 1040X and the instructions for completing it. To support your claim, you can also write a note detailing the reasons for the amended tax return. There are three columns in the 1040X, which are explained below:

  • Column A: here, you enter your income amount and the taxes you withheld from your original tax return

  • Column B: here, you input the changes that occur in your income and taxes. We mean the difference between the amended filing and the initial filing. 

  • Column C:  taxpayers will enter the right income and tax amount, which they have based on their amended filing. 


  1. Examine the Amended Return

Make sure to review the amended return to ensure that all the details are included and the information supplied is correct. Make sure all supporting forms and documentation are present.

  1. Mail the Amended Return 

If you have checked and everything appears right, mail the amended return with all supporting documents to Uncle Sam. There are times when filing an amended tax return could mean that a taxpayer owes Uncle Sam more money. Make sure to file your payment with the return, as it will help reduce penalties and interests. 

Typically, the IRS needs at most 12 weeks to review amended returns and process them. 


When Should you File an Amended Tax Return? 

If the issue on your original tax return is a simple error, it does not require filing an amended tax return. There are cases Uncle Sam can be so generous to correct simple mistakes. You will also be corrected for all changes and amendments to your return. 

However, if there is a huge error that could impact your tax obligation, one needs to file an amended tax return as soon as possible. 

Cases in which you need an amended tax return are:

  • Your income amount was false.

  • After filing your tax, you got the new and relevant information.

  • The number of dependents you claim was wrong.

  • You submitted your tax with the wrong filing status.

  • You did not claim the right tax credits and deductions.


What is the Deadline for Filing an Amended Tax Return?

Taxpayers have a grace of three years from the day the faulty tax return was filed to submit an amended tax return. There is also the opportunity to file it in two years of the date the tax was paid. However, some provisions give taxpayers the grace to submit the 1040X amendment after the three-year deadline. More information is available on the IRS's page


Is there a Chance to File an Amended Tax Return Electronically?

Taxpayers cannot submit an amended tax return online or electronically and people who want to amend several tax returns must prepare a distinct Form 1040X for all the tax years involved. The amendments for each year should be mailed to Uncle Sam in particular envelopes to their respective addresses.


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