The IRS released Tax Tip 2024-38, April 25, 2024, to explain to taxpayers how to amend a tax return. If a taxpayer discovers an error after filing their return, the taxpayer may need to amend a tax return. IRS states that when a taxpayer realizes that their federal tax return has a math error, missing income, or other mistake, they should file an amended tax return. A taxpayer must file an amended return if they need to correct: Filing status, Income, Deductions, Credits and Tax liability. Taxpayers usually do not need to file an amended return to fix a math error or if they forgot to attach a form or schedule.
The IRS may correct certain errors on a return and may accept returns without certain required forms or schedules and notify the taxpayer by mail. In these instances, the IRS states that there’s no need to amend a federal tax return. Nonetheless, Form 1040-X, (Amended U.S. Individual Income Tax Return) is used to correct a previously filed Form 1040-series return or to change amounts previously adjusted by the IRS.
Electronic filing now available for Form 1040-X
Taxpayers can now file Form 1040-X electronically with tax filing software to amend Form 1040, 1040-SR, or 1040-NR for the current or two prior tax periods. Paper filing is still an option for Form 1040-X.
Taxpayers can File Form 1040-X to:
- Correct Form 1040, 1040-SR, or 1040-NR (or older filings of Form 1040-A or 1040-EZ).
- Make certain elections after the deadline.
- Change amounts previously adjusted by the IRS.
- Make a claim for a carryback due to a loss or unused credit.
Taxpayers can electronically file up to three amended returns per tax year. If a taxpayer files a third amended return that is accepted, all subsequent attempts will be rejected.
Amended returns must be filed by paper for the following reasons:
- Any amended Form 1040, 1040-SR, 1040-NR, or 1040-SS/PR returns older than the current or prior two tax periods cannot be amended electronically. Amended returns for those earlier tax years must be filed by paper.
- If amending a prior year return originally filed on paper during the current processing year, then the amended return must also be filed on paper.
The current processing time to amend a tax return is more than 20 weeks for both paper and electronically filed amended returns. IRS states that calling the IRS will not speed up return processing.
Some amended returns take longer than 20 weeks for several reasons. A return may need further review if it:
- Has errors
- Is incomplete
- Isn’t signed
- Is returned to you requesting more information
- Includes a Form 8379, Injured Spouse Allocation
- Is affected by identity theft or fraud
Delays in processing may also occur when an amended return needs:
- Routing to a specialized area
- Clearance by the bankruptcy area within the IRS
- Review and approval by a revenue officer
- Review of an appeal or a requested reconsideration of an IRS decision
Taxpayers will be contacted if more information is needed to process their amended return.
Best to consult a knowledgeable CPA if you are a taxpayer that needs to amend a tax return.
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