1040xIt turns out the IRS has a backup plan for individuals who may have made a mistake the first time around when filing their taxes. The need for a “do-over” is not really surprising considering the complex nature of the tax code coupled with the hectic pace most of us try to maintain. In fact the IRS almost expects mistakes and provided Form 1040X to help you get your tax return right the second time around.

Filing An Amendment

You may be wondering what circumstances require filing an amendment to your tax returns. If you have to correct any of the following an amendment is required.

  • filing status
  • tax credits
  • tax deductions
  • total income

If you have noticed a mathematical error after filing your tax return you will not be required to file an amendment; errors of that nature are caught by computers and corrected.

Once you realize you need to amend your tax return doing so is relatively simple. Remember the IRS is basically interested in knowing what you originally reported, what your corrections are an why you need to make the changes. You can find Form 1040X at the IRS website. Form 1040X must be filed on paper and returned to the IRS Service Center shown on page 1 of the 1040X. It will take approximately -12 weeks for the IRS to process the amended return. You should make certain you have filled out the form correctly and have no additional changes before submitting as amended tax returns are generally scrutinized more than the original filing.

What Happens After You Submit Your Amended Return?

The main reason you should correct erroneous tax returns is because you can be certain eventually the IRS will find the error. If your amended tax return causes you to owe the IRS you will likely not be penalized for an honest mistake, however you will probably have to pay interest on that money which makes catching and correcting errors important to save you money in the long run. Whether your amended return benefits you or the IRS you should always make sure you file your taxes correctly to avoid future problems.

Your amended tax return should not trigger an audit however you will want to be sure to provide all documentation supporting changes and the reasons why you have to submit an amended return. If you prepare your amended return in a way that is easy to follow and understand you are more likely to avoid an audit and have the return processed quickly.