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Posted by Dennis Jao

How Many Years Back Can You Amend A Tax Return?

How Many Years Back Can You Amend A Tax Return?

As a taxpayer, you should be familiar with the current year’s tax return. You can request to check or change the information on the tax report after filing your assessment year tax. Not many taxpayers know about filing a notice for mistakes that happened years back. IRS permitted amendments to tax returns that were submitted some years back. 

For instance, you might be going through the previous year’s tax payment, or your bank adjusted to a 1099 form, and you realize a mistake; you can request a form as far back as three years to request a credit or refund. Thus, you can amend tax papers from 2019 through 2022. Regardless, if you find a mistake that needs adjustment, file for an amended form; else, the IRS may mail you an audit letter. 

 

What is an amended tax return?

To amend is to change or shift information or input, likewise regarding amended tax return. An amended tax return is a change in the report previously submitted to the IRS. The amendment is to input new-discovered information. 

When you file for an amendment, Form 1040 and other Forms will be attached for filling. Afterward, you’ll be given a tax amendment Form 1040X to file income, deduction, status, credits, and other forms.

 

How can I file an amended return?

As earlier stated, you’ll be given from 1040X to record the new information. Form 1040X is sent electronically, but the IRS office still accepts the paper form. If you intend to use the electronic form 1010X, here are some tricks to make the procedure seamless.

  • Ensure your signature and date are on the form

  • Attached other documents requested by the IRS office. 

  • The site has the requirement and submission order of the amendment papers; follow the procedures to avoid denial.  

  • The document requires the reason for the change in the amendment Form 1040X, part III.

  • Since the process is electronic, remember to print a copy of Form 1040X to mail. Having a second copy to keep is a good idea. 


However, if you find multiple years that need amendment, you’ll need a Form 1040X to file each year’s report. 

Understanding Your Audit Risk

The law permits the IRS three years to audit a tax return. Though you filed an amendment, the tax return doesn’t start the three-year calendar over again for IRS audit. The IRS has 60 days to review the new amended tax return when there is a tax increase. 

The 60-days window only applies when there is a tax increase. The IRS only has three years to make their review but can still audit the report under certain circumstances. The new law grants the IRS a six-year window to audit a report with a 25 percent and above increase or decrease on the sold property. 

 

Amending Returns after Three Years

There are a few cases where taxpayers are allowed by Uncle Sam to file for form 1040X after three years. However, Form 1040X is not available to mentally or physically challenged in their financial affairs. In the case of a bad debt or worthless security, the amended tax return is extended to seven years.


Bottom line

An amended tax return form is a second chance to reap your missed tax benefits. The downside is you may find out you’re owing. Either way, being cognizant of mistakes on your report will save you the stress of getting an auditor from the IRS and a mistake you’ll have to correct in the near future. 


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Dennis Jao
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