When to File an Amended Return

As a Certified Public Accountant, I know the importance of filing an Amended Return and when to file a refund claim, but do you? Of course, I will provide help on your taxes, but I believe that it is important for every tax advisor to inform their clients on every “why” and “when” in certain taxation processes.

Filing an amended Return is needed if you overpaid taxes, failing to take allowable deductions or credits. To report any additional claims or issue a refund, you need to use Form 1040X (Amended U.S. Individual Income Tax Return). You use the same form when you need to change your filing status (single or joint taxpayer). However, it is important to note that you cannot switch filing status after the due date for the return. You do not need to file a return claim if you have overpaid taxes on wages or salary. There is a 20% penalty charge for an unwarranted refund. This is a costly mistake that you do not want to make. This is when it is important to seek a tax advisor.

You may file a refund claim on the 1040X form within 3 years, or within 2 years from the time you paid your tax. Some returns are barred with a 3 year “look back” rule. If you filed an agreement that give the IRS an extended statutory period against you, you are allowed an additional period to which a file can by made in certain amounts.

Failure to file a timely refund claim is detrimental. Mailing a refund claim so that it is postmarked by the due date (including extensions), using the US Postal Service, qualifies as “timely”.

Just Call Jack if are you needing any tax help.

Credit to Source: J.K Lasser’s Your Income tax 2011

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