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Q: Is a superseded return a Form 1040, U.S. Individual Income Tax Return, or a Form 1040-X?
A: The superseded return is filed on a Form 1040.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.
About National Association of Tax ProfessionalsThe National Association of Tax Professionals (NATP) is the largest association dedicated to equipping tax professionals with the resources, connections and education they need to provide the highest level of service to their clients. NATP is comprised of over 23,000 leading tax professionals who believe in a superior standard of ethics and exemplify professional excellence. Members rely on NATP to deliver professional connections, content expertise and advocacy that provides them with the support they need to best serve their clients. The organization welcomes all tax professionals in their quest to continually meet the needs of the public, no matter where they are in their careers.
The NATP headquarters is located in Appleton, WI. To learn more, visit www.natptax.com.
Information included in this article is accurate as of the publish date. This post is not reflective of tax law changes or IRS guidance that may have occurred after the date of publishing. All taxpayer circumstances are different, and NATP recommends contacting research services if you have specific questions about your clients’ tax situations.