Tax season’s over, everything seems to be on the up-and-up, and then you receive an additional 1099. For many people, this may seem like the first step toward IRS tax penalties, but it doesn’t have to be. If you discover you have additional items to file or something missing on your tax return after the fact, it’s possible for you to file an amended tax return and save yourself from future tax issues.
There are many reasons why you may need to file an amended tax return. Whether you need to add additional dependents or report additional income, filing an return4refund amended return can save you a lot of time and hassle as well as saving you from future IRS tax penalties.
In order to file an amended tax return, you will need to file a 1040x. This is an extension of your original tax return. Amended tax returns are scrutinized a little more closely by the IRS, so you must take extra care when filing them.
How to File a 1040x
When you intend to file an amended return, your first step is to file a new 1040. It is critical that when you file a 1040x, it matches up with a standard 1040. When you prepare your 1040x, you will notice three columns. Column A reports various items on your original 1040, column B reports items on your new return, and column C lists the differences between the two. In part two of your 1040x, you detail the changes you made to the amended tax return. It’s important to be clear and concise as possible with this. Try not to leave any room for error on the IRS’ part in interpreting your new return or you may wind up being called for an audit.
Depending on what changes you make on your return, you may end up owing money to the IRS. Many people with 1099s have had to file a 1040x if they did not receive their 1099 in time to file their 1040. If you are expecting a 1099 and haven’t received it in time to file by April 15th, file your 1040 as is and then file your extension when the 1099 arrives. If the 1099 you are expecting is the only income report you receive, you may be able to get extensions to file your tax return by as much as six month.
After You Send In Your Amended Tax Return
After you file your 1040x, the IRS will then examine it and check to make sure the changes are correct. If they need further information on anything, you may receive a notice in the mail requesting that information. Some people may say that filing an amended return will trigger an audit. Although there is no proof of this, this should be enough reason why you should make it as clear as possible on your 1040x why you made any changes. It may be beneficial to include photo copies of any documents that could act as proof of the changes.
Take steps and avoid IRS penalties before they occur. If you know of changes to your tax return, take the time to file a 1040x. It’ll be the best decision you’ll make all year.
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