Amend a Tax Return
Filing an amended tax return can be complicated, but it doesn’t have to be.
What is an amended tax return?
An amended tax return is used to fix mistakes on an already filed tax return. If you filed a tax return with the wrong filing status, or forgot to claim income, deductions, credits or tax liabilities, or made other errors, then you may want to file an amended return. The IRS may find and correct some errors when processing your return. If they do, the IRS mails a notice to tell you what they found and any steps that may be required to fix the error. Amending your return may be required. A tax pro can assist you with filing an amended tax return, and may be able to help find deductions or credits that were missed the first time around.
When should I amend a tax return?
Make sure to file your amended return as soon as possible. Penalties and interest can be assessed, and continue to accrue if you owe additional tax payments. If you are due a refund when filing an amendment, there is a limit of three years after filing the original return or two years after you paid any tax due from the return, whichever is later. There are some exceptions, but you risk forfeiting your refund if you don’t file timely. To amend your state tax return, the amount of time varies by state, so check with your state taxing authority or a tax pro as soon as possible to avoid penalties and interest.
How do I amend a tax return?
Amending your tax return requires completing additional tax forms. Your amendment should explain why and how it is being amended and provide supporting documentation.The forms required to amend your tax return depends on how you initially filed. To amend federal personal taxes, Form 1040-X is required. C-corporation taxes require Form 1120-X. For Partnership and S-corporation taxes, Forms 1065 and 1120-S, respectively, are required. Amending a state tax return varies based on the state and type of return. If you need help with a federal or state tax amendment, a tax pro can prepare and file your amended return.
Save money when you file an amended return
If you owe money on your amended return, filing the amended return and paying the balance due as soon as possible can help limit the amount of penalties and interest that may be assessed. If you expect a refund when you amend, do not delay. To receive a refund when filing an amended federal return, you must file within three years after filing the original return or within two years after you paid any tax due from the return, whichever is later. Waiting too long to amend your return can result in you forfeiting your refund. If you are amending a state return, check with your state taxing authority to find out when it must be filed to claim your refund. Working with a tax pro may help you maximize savings and minimize penalties and fees.
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Got questions about amending tax returns? We’ve got answers.
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What happens if I amend my tax return?
When you amend your tax return, the IRS or respective state taxing authority will process your amended return, which will replace your current tax return for that tax year. The amended tax return essentially replaces any other tax returns that you filed for the same tax year.
Your amended tax return may result in a balance due, a refund or no change on your income tax return. If the amended return results in a balance due, you should pay the balance due as soon as possible because the IRS or state taxing authority may assess penalties and interest while the balance due remains unpaid.
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How long do you have to amend a tax return?
Generally, you should file an amended federal tax return within three years after filing the original return or within two years after you paid any tax due from the return, whichever is later. If you wait too long, you may forfeit any refund that you are entitled to. States have varying rules on how long you have to file an amended return, so you should check with your state taxing authority or a tax pro to determine how long you have to amend your state tax return.
There are a variety of exceptions to the general rule for how long you have to file an amended tax return. There are exceptions for reporting net operating losses, financial disability, and audit extensions. Additionally, there may be times when it is advisable to file an amended return even if you are outside of the time period for receiving a refund. If you are not sure if you should file an amended tax return, you should contact a tax professional to assist you with determining if filing an amended tax return is necessary in your situation.
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How long does an amended return take?
Preparing an amended income tax return generally takes about the same amount of time as preparing an original income tax return.
The IRS states that it normally takes up to 16 weeks for them to process an amended tax return. As a result of COVID-19, however, the IRS is now advising that it is taking more than 20 weeks for them to process amended tax returns.
The IRS allows you to check the status of your federal amended personal tax return on their website. You will need your social security number, date of birth and zip code. For tax years more than three years prior to the current tax year, the online status tool will not work. If you amended your individual or business income tax return more than 20 weeks ago, and you have not received a response from the IRS, you can call the IRS to request the status of the amended tax return.
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Will the IRS audit you if you amend your taxes?
No, the IRS will not audit your tax return just because you file an amended return. The IRS states that filing an amended tax return does not affect the audit selection process for your return. The IRS does point out that the amended return will go through a screening process and that the amended return may be selected for audit.
One way to reduce the probability that the IRS will audit your amended tax return is to include a clear explanation as to why the return is being amended. You should also attach supporting documents to the amended tax return that clearly show why the original return is being amended. A tax pro can help you prepare your amended return.