AC9 Amended and Prior Year Returns

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Pub 4012 – Tab M Pub 4491 – Lesson 33

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 _{Amended returns}

─ _{Reasons to amend}

─ _{Amending in TaxSlayer} ─ _Printing

─ _Assembling ─ _Filing

─ _{State return}

(3)

 _{Returns amended on Form 1040X}

 _{Can amend returns for current and previous three years only}

 _{State return may also need amendment}

 _{Amended returns must be mailed to IRS}

─ _{Not eligible to E-file}

 _{Counselors must be certified for year amending}

(4)

 _{Something reported incorrectly or omitted from}

original return

─ _{New or corrected information received by taxpayer} ─ _{Should or could have used a different filing status} ─ _Mistakes

─ _Omissions

(5)

 _{Married individuals may amend to file MFJ if originally used}

different status

─ _{Up to three prior year returns}

─ _{Must be legally married as of December 31 of year amending}

 _{Married individuals may}_not_{amend MFJ to MFS}

─ _After_{original filing deadline}

(6)

 _{Do not amend return if}

─ _{Math errors}

• IRS will correct them

─ _{IRS has requested taxpayer provide missing}

schedules/forms

• Taxpayer should respond per notice

(7)

 _{Verify amended return necessary}

 _{Verify IRS changes or notifications}

(8)

 _{Must use TaxSlayer software for the year amending}

─ _{Amending 2016, use 2016 TaxSlayer software}

─ _{Choose which year you need from}_{Change Tax Year}

dropdown list

 _{If original return recently filed}

─ _{Wait until IRS processes original return before submitting}

amended return

(9)



_{Start by creating a corrected return}

─

_If

_{originally filed at site}

_{, open and correct}

─

_{If originally filed elsewhere, enter income, deductions,}

taxes and payments to make Form 1040 and any

forms that will change

identical to original return

.



_{Go to 20XX Amended Return in left side menu}

(10)

Do the following steps in any order:

 _{Enter or verify the original federal return information}

_{Caution: verify original state filing before next step for}

changes that impact both state and federal returns

 _{Make corrections to federal return}

 _{Describe the reasons for the federal amendment}

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State amended returns may depend on Federal information

 _Important_{: Verify and match original state return}

information before making corrections to the federal

 _{If original return was prepared elsewhere, create state}

return prior to making corrections to federal return

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(14)

(15)

 _{Print Form 1040X and all}_new_{and any}_{changed forms}

or schedules

─ _{Two copies plus one if needed for state} ─ _{Print from Amended Tax Return screen}

 _{Generally, do}_not_{include new Form 1040 in print}

packet unless required by state

(16)

 _{Attach new and corrected tax documents}

─ _{W-2, W-2G, or Form 1099 (if tax withholding)}

 _{Attach all new and changed forms and schedules}

 _{Include supporting documents, worksheets, etc. in}

taxpayer’s copy only

(17)

 _{Provide taxpayer with Form 1040X IRS mailing address}

 _{No cover letter required}

 _{Taxpayer/spouse sign and date copy to be mailed}

(18)

 _{Original return}_{refund received on normal IRS schedule}

─ _{IRS.gov “Where’s My Refund”}

 _Form _{1040X refund}_{received within 8 to 12 weeks}

─ _{After 12 weeks, contact IRS 800-829-1040}

 _{Refunds cannot be direct deposited}

─ _{IRS check}_{mailed to address on Form 1040X}_{may include}

(19)

 _{Taxpayers time to file for refund later of:}

─ _{3 years from original due date or actual date filed if later} ─ _{2 years from date tax was paid}

 _{State statute may differ}

(20)

 _{Balance due with prior year amendment:}

─ _{Taxpayer should file Form 1040X as soon as possible but}

after original return has been processed

─ _{Include payment to reduce penalty and interest}

─ _{IRS will send letter with penalty and interest assessed}

 _{Do not include 1040-V (voucher)}



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 _{Taxpayers owing additional tax}

─ _{IRS barred by statute of limitation from assessing additional}

tax

• 3 years from original due date or date filed if later

• No limitation if fraud involved

─ _{3 year statute of limitation does not apply if return never}

filed

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 _{When state only amendment required}

─ _{If state requires federal amendment to be attached, amend}

federal and file with explanation of “Information Only: Changes did not impact the federal return however the return has been amended for state purposes”

(23)

 _{Only Form 1040 and any forms or schedules that will}

be changed need to be identical to original return

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 _{For other forms, you can enter totals only. For example,}

─ _{Add W-2s together: Enter total of Boxes, 1, 2, 12 (by code)}

and state tax withholding

─ _{Add Form 1099-Rs together (separating pensions from IRAs)} ─ _{For a business enter net profit as gross income with zero}

expenses.

─ _{For capital gains enter net gain as proceeds with zero basis}

(25)

 _{Verify column A of Form 1040X agrees with last}

determined return

 _{Confirm needed changes properly made and tax}

re-computed properly

 _{Verify schedules and forms to be attached}

(26)

 _{Review amended return with taxpayer}

 _{Verify taxpayer understands how to file amendment}

─ _{Sign, address envelope, additional postage may be required} ─ _{If payment required, include with return}

─ _{Verify taxpayer aware of filing due date}

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