The latest information on filing amended returns
In the ever-evolving world of tax preparation, it’s essential for preparers to stay ahead of the curve and be well-informed on the latest updates and changes in the industry.
One key aspect that nearly all tax preparers will inevitably encounter throughout the year is the filing of amended returns. Whether it’s due to new tax laws, overlooked deductions or simple human error, amended returns are a crucial part of the tax preparation process.
Below, you’ll find a few of the top questions from a recent webinar on the topic and their accompanying answers. If you choose to attend the on-demand version of this webinar, you’ll have access to the full recording and the entire list of Q&As.
Q: Is there a threshold for which you would file an amended return instead of waiting for the IRS to match the data and correct the return? For example, if a client omitted interest that would increase the tax due by $10, would you file the amended return or wait for the IRS to issue a notice of additional tax due?
A: No, there is no threshold. If income was excluded that would increase the tax by any amount, the return needs to be amended and the tax paid.
Q: I tried to e-file a Form 1040-X for a deceased taxpayer, but the IRS rejected it because the SSN is apparently frozen for the deceased spouse. What now?
A: Yes, that happens. You’ll need to file the return on paper.
Q: How long is the wait for an electronically amended return?
A: Three weeks after electronically filing the return, the taxpayer can use the IRS tool “Where’s my Amended Return” at https://www.irs.gov/taxtopics/tc308 to find out when they can expect their refund.
Q: Is a superseded return a Form 1040, U.S. Individual Income Tax Return, or a Form 1040-X?
A: The superseded return is filed on a Form 1040.
To learn more about the tax implications of filing amended returns, you can watch our on-demand webinar. NATP members can attend for free, depending on membership level! If you’re not an NATP member and want to learn more, join our completely free 30-day trial at natptax.com/explore.