November 17, 2011 by ButterflyFiled under: Taxes
Most tax practitioners require a little extra tax preparation education to learn the details about preparing an amended return. When Form 1040X is properly completed, it summarizes the new tax return and explains the contrast with the original filing.
Assembly of the entire package is a key element of tax preparer training. An amended tax return is only mailed to the IRS and never electronically filed. The mailing is sent to the same IRS Service Center that processed the original tax return. The amendment forms should easily lead the IRS agent to the tax reporting changes.
Form 1040X is the top page of an amendment filing. This form provides the essential details contained on the newly prepared Form 1040. A most important part of paid tax preparer study is that Form 1040X must have a clear reason for filing an amended return. This explanation points out what forms have changed.
The IRS Service Center manually processes the amended return. After assuring that the explanation for the change is sufficient, the attached documentation is examined. Consequently, the pages that follow Form 1040X are the new Form 1040 along with any new schedules. All of these attachments are prepared by following the same tax preparation guide that would have been deployed if the original tax return was accurately prepared.
An IRS agent reviews all the new information described on Form 1040X. If additional documentation is required, a letter is sent that requests specific details before the amendment is processed.
In addition, there is a double check of all the withholding and other tax payments listed on the amended tax return. Payment of any additional tax owed as a result of the amendment is sent with the Form 1040X. Refunds require approximately 8 to 12 weeks of processing for taxpayers to receive.
The IRS does verify information on amended tax returns more thoroughly than original tax returns. Therefore, efficient processing of an amendment demands providing a clear reason for amending and proper documentation. A little more detail is thus sent with an amended tax return. For example, efficiency of IRS processing improves by sending copies of the original tax return pages that have changed.
In addition, attaching a photocopy of the supporting document for the amendment is recommended. With original tax filings, copies of documents are not attached – other than a W-2 or other form showing withholding. Only an amended tax return should have a copy of any document that supports a new deduction.
More than any of the other tax preparation services, amended tax returns entail a focus on clear explanation and organized documentation. Nothing related to amendments is accepted without some proof.
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Pursuant to the requirements of the Internal Revenue Service Circular 230, we inform you that, to the extent any advice relating to a Federal tax issue is contained in this communication, including in any attachments, it was not written or intended to be used, and cannot be used, for the purpose of (a) avoiding any tax related penalties that may be imposed on you or any other person under the Internal Revenue Code, or (b) promoting, marketing or recommending to another person any transaction or matter addressed in this communication.
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