What Is An Amended Tax Return?
Have you ever had to submit an amended tax return? It can be a stressful process, and it’s important to understand what it is and how to do it correctly. An amended tax return is a form that is used to correct errors or make changes to a previously filed tax return. It’s important to understand that an amended tax return is not simply an additional tax return that supplements the original one. It is an actual change to the original return.
Why Would You Need to File an Amended Tax Return?
There are a few common reasons why an amended tax return may be necessary. It could be that you made an error when filing your original return, such as entering inaccurate information or omitting certain information. It could also be that you are entitled to a refund or need to pay additional taxes due to changes in your filing status or income. If you need to make any changes to the information you reported on your original return, then you will need to submit an amended tax return.
How to File an Amended Tax Return?
The first step in filing an amended tax return is to fill out Form 1040X. This form is used to make corrections to your original return. You will need to provide the information from your original return, as well as the correct information for the changes you are making. Once you have completed the form, you will need to sign and date it and attach any relevant documents, such as receipts or other supporting documents. You will then need to mail the form and documents to the IRS.
When to File an Amended Tax Return?
Once you have completed the form, you will need to submit it to the IRS as soon as possible. Generally, you have three years from the due date of the original return or two years from the date you paid the tax, whichever is later, to submit the amended tax return. It is important to note that the IRS may deny your claim if you fail to submit the amended tax return within the allotted time period.
What Happens After You File an Amended Tax Return?
Once you have submitted your amended tax return, the IRS will review it and determine if the changes are valid. Depending on the changes, you may receive a refund, owe additional taxes, or have no change to your tax liability. The IRS will generally contact you if they have any additional questions or need more information. After the review is complete, you will receive a Notice of Deficiency, which will inform you of the amount of taxes you owe or the refund you will receive.
Can You File an Amended Tax Return Online?
In some cases, you may be able to file an amended tax return online. The IRS offers an online tool that allows you to fill out and submit Form 1040X electronically. You will still need to mail in any supporting documents, but you can save time by filing your amended tax return online. It is important to note that not all tax returns can be amended online, so it is best to check with the IRS before attempting to do so.
What Are the Penalties for Filing an Amended Tax Return Late?
If you fail to submit an amended tax return within the time frame specified by the IRS, you may be charged a penalty. The penalty is 5% of the additional taxes owed for each month that the return is late, up to a maximum of 25%. If you are due a refund, the penalty is limited to the amount of interest that would have been earned on the refund during the time it was overdue. In addition, if the IRS determines that you willfully filed the amended return late, you may be subject to criminal penalties.
Conclusion
An amended tax return is a form used to correct errors or make changes to a previously filed tax return. There are a few common reasons why an amended tax return may be necessary, such as errors or changes to your filing status or income. The first step in filing an amended tax return is to fill out Form 1040X. Generally, you have three years from the due date of the original return or two years from the date you paid the tax, whichever is later, to submit the amended tax return. In some cases, you may be able to file an amended tax return online. If you fail to submit an amended tax return within the time frame specified by the IRS, you may be charged a penalty.