What is an Amended Tax Return?
If you believe that your tax returns have been erroneous (you did not claim all income and/or deductions), you are entitled to correcting the returns. There are 2 time limits: You must amend the returns 3 years from the due date or 2 years from the time that it was paid. Note that if its not paid, statute of limitations is never expired and either you or the IRS can still make adjustments to it. Weve seen cases where the IRS was demanding the taxpayer money ($77,000) and after we amended the returns, the IRS gave him a REFUNDED ($55,000)! Obviously, this is a very powerful technique. However, when the amended return yields large differences such as this case, the IRS will most likely require an audit before approving the refund. Another important point is that frivolous amended return can result in fraud penalties and imprisonment. Top 19.
Topic 308 – Amended Returns If you discover an error after your return has been mailed, you may need to amend your return. The service center may correct errors in math on a return and may accept returns with certain forms or schedules left out. In these instances, do not amend your return! However, do file an amended return if your filing status, your income, your deductions or credits were incorrect. Use Form 1040X (PDF), [i]Amended U.S. Individual Income Tax Return[/i], to correct a previously filed Form 1040 (PDF), Form 1040A (PDF), Form 1040EZ (PDF), Form 1040EZ-T, Form 1040NR (PDF), or Form 1040NR-EZ (PDF). If you are filing to claim an additional refund, wait until you have received your original refund (you may cash that check). To avoid penalty and interest, if you owe additional tax for a current year amended return, file Form 1040X and pay the tax by April 15 of the current year. If the due date falls on a Saturday, Sunday, or legal holiday, the due date is delayed until the
