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.
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 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 depend 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.
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.
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 to determine how long you have to amend your state tax return.
There are exceptions to the general rule for how long you have to file an amended tax return. For example, exceptions apply 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.
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 several weeks to process an amended tax return. Processing times can vary depending on volume and the complexity of your return.
The IRS allows you to check the status of your federal amended personal tax return on its 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 may not work. If you amended your individual or business income tax return and have not received a response after a reasonable amount of time, you can call the IRS to request the status of the amended tax return.
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.
Please note: This page offers general legal information, not but not legal advice tailored for your specific legal situation. Rocket Lawyer Incorporated isn't a law firm or a substitute for one. For further information on this topic, you can Ask a Legal Pro.
