How to Amend a Tax Return
The marvelous 1040X, 941X and 1120X.
How to Amend a Tax Return
If a client has improperly filed his or her 1040, 1040A, or 1040Ez tax return and the error is serious enough, the Irs will need that the client file a 1040X with the correction. If the client has made complicated errors over some years, the client will need to file a 1040X return for each year in question. The same applies to clients who make serious errors on their Form 941 payroll tax forms or their Form1120 corporate tax forms. In those situations, the taxpayer will need to file a 941X or 1120X to exact the error or errors.
The basic format of these amended returns is essentially the same. The taxpayer is required to place the original return income, deduction and credit figures in the first column and the amended figures in other column. The taxpayer will also need to supply an explanation about the figures that have been amended.
However, not all errors are created equal. Some taxpayer errors do not need the filing of an amended return, while others do. So let's discuss a concentrate of categories of errors that taxpayers might make and what they may have to do to exact them.
Basic Errors (e.g. 2+2 = 5?)
Surprise, surprise, taxpayers make mathematical errors! However, as crucial as these errors can be to the bottom line, the Irs will typically not need the taxpayer to file an amended return. The Irs aid town will commonly exact most mathematical errors in their system, and will then send the taxpayer a observation about the change.
Taxpayers also forget to attach the exact forms to their 1040 tax returns (e.g. W-2 forms, program Cs, etc). Again, the Irs will typically not need the taxpayer to file an amended return. The Irs will first ask that the taxpayer substantiate the amounts reported by submitting the missing document(s) before they make the decision to revise a tax return.
Serious Errors (e.g. Looks suspicious sufficient for the Irs to raise a red flag)
The Irs will need a taxpayer to file an amended return to exact a mistake if the taxpayer incorrectly reports any of the following:
-Incorrectly reporting the whole of dependents (e.g. Claiming 30 dependents when a taxpayer only has 3).
-Incorrectly reporting the filing status (e.g. A taxpayer listing himself as singular when he is married).
-Incorrectly reporting total revenue (e.g. A taxpayer reporting gross wages that are distinct than what is on his W-2).
-Incorrectly claiming deductions or credits (e.g. Claiming a child tax credit when the taxpayer has no children).
Fraudulent Taxpayer Behavior
Occasionally, taxpayer-clients feel compelled to tell our law firm that they have intentional falsified their gross revenue by understating it. Other taxpayers have claimed fictitious dependents on their tax returns. When a client tells our firm that they have purposely falsified data on any of their tax returns for anything reason, we advise them that our firm cannot support them in any fraudulent performance and we will have to withdraw from representation.
However, if the taxpayer-client files amended tax returns for the questionable/falsified. During the magical time of year known as tax season, millions of Us taxpayers scurryabout to get ready their tax returns for eventual filing. However, since the 1040 filing process can be very complex, it is not surprising that taxpayers make mistakes when preparing their tax returns. Worse still, all tax returns must be signed under criminal penalty of perjury, which can cause some ache to taxpayers when they are not determined that they are submitting all of the exact information.
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