Correcting a tax return doesn’t always require fear or delays. If you discover an error perhaps omitted income, a missed deduction, or a changed filing status, you may be able to fix it by filing an amended return.
This guide explains when you need to amend, how to do it properly, deadlines to meet, and steps to minimize headaches.
An amended tax return is an official way to make any changes on your tax returns after you've already filed them. Changes can be made for several reasons, but it's often due to incorrectly declaring income sources in the original filing.
If the changes caused you to underpay your taxes, you would need to make an additional payment to the IRS. If you overpaid, the IRS would refund you the difference.
Note that you can't amend taxes indefinitely. You need to submit an amendment, either no more than three years from the original filing date of the tax return or within two years of paying your tax returns for that year. Once these time limits have passed, you won't be eligible for refunds anymore.
You should consider amending your return if, after filing, you discover that:
However, you normally do not need to amend minor math or clerical errors; the IRS often corrects those during processing.
The IRS generally corrects mathematical or clerical errors, or requests missing schedules/forms meaning you don’t need to amend those.
You should amend if the changes involve substantive items: income, deductions, credits, filing status, or dependents.
Filing an amended return is relatively straightforward if you expect a refund — as long as you're within the requisite two- or three-year window of opportunity. But when you've underpaid your taxes, filing an amended return can be a dicey situation. Always consult a tax professional first to discuss the full consequences of amending your return.
Generally, if the original return understated your tax bill by only a small amount, your tax advisor will recommend that you amend your return and pay the additional taxes, interest and penalties as soon as possible.
For larger understatements, let your tax advisor take the reins. He or she has experience in dealing with past-due taxes and may be able to get you off the hook with minimal or no penalties. But be prepared to pay at least the past-due tax plus interest. He or she can also help you file amended business returns, if needed.
Amending tax return filings can be uncomplicated, but it can also be tedious. If you're unsure how to do so or have any questions, contact the expert Chicago tax accountants at Porte Brown. We'll help you file your returns and amendments as error-free as possible.
Get in touch today and find out how we can help you meet your objectives.
