Should you file an amended tax return?
Even if you’ve already filed your yearly taxes—on time or even late—you may still uncover new information, such as a missed deduction or an updated tax document. In such cases, filing an amended tax return may be worth considering to claim the refund or make necessary corrections.
Do you have to amend your tax return if there’s an error or new information?
There’s no legal requirement to file an amended tax return, even if you discover a mistake or receive updated forms like a revised 1099 or K-1. However, the IRS often recommends making corrections, especially if they involve substantial deductions, unclaimed losses, or revised income reports. For example, if you have worthless securities or bad debts, you have up to seven years to claim those losses through an amendment.
Is it worth the time and cost to amend your tax return?
Deciding whether filing an amended return is worth your time and effort depends on how much you stand to gain. At Taxadore, our amended tax return specialists will review your previous filings, going back as far as three years, to identify missed opportunities or errors. Before filing, we’ll estimate the potential refund increase, helping you determine if it’s worth proceeding.
Key considerations for filing an amended return:
● Complete Accuracy: When amending a return, all necessary corrections must be addressed, even if some increase your tax liability. Amending only select items could result in penalties or increased scrutiny from the IRS. Trust a tax professional to ensure everything is accurate and compliant.
● Potential Audit Risks: Amended returns may face greater scrutiny than original filings, especially if you’re claiming a significant refund. However, applying all or part of the refund to your current taxes instead of requesting a payout can sometimes reduce attention.
● Separate Forms for Each Year: Each amended return requires a separate Form 1040X, even if you’re filing for multiple years. These forms must be filed on paper, regardless of whether your original return was submitted electronically.
Timing matters for amended returns
Amended returns must typically be filed within three years of the original return’s filing date or two years from the date you paid the tax—whichever is later. The IRS retains three years to audit your return, even after filing an amendment, so filing within that window is essential.
When NOT to file an amended return:
● Accurate Original Filing: If your original return was accurate to the best of your knowledge, amending may not be necessary.
● Math Errors: The IRS will often correct simple calculation mistakes for you.
● Missing Attachments: If you forgot to include a form, the IRS will likely process your return and request the missing information if needed.
Get Professional Support from Taxadore!
Amending a tax return can be a complicated process, but Taxadore is here to guide you every step of the way. Our experts will handle the details, ensure accuracy, and help you decide if amending is the best decision for your situation.
Contact Taxadore today for a free consultation on your amended tax return and take the first step toward maximizing your refund.