Filing an Amended Tax Return

Where's My Amended Tax Return?

The stress of tax season and the constant changes in the tax laws can translate to mistakes on your tax return.  These circumstances could cause you to miss out on a tax refund or have you owing money to the IRS that you really do not owe. You may have made a calculated mistake, used the wrong filing status, or maybe a simple mathematical error.   No matter what the reason filing an amended tax return can correct the problem.

You may also have found this article because you filed an amended return and wondered about the status.  The IRS now has a section on their site for "where's my amended return.  There you can check the status of your amended return. 

To help with the confusing process of amending a return, we are going to discuss the following topics:

• When Do I Need to File for an Amended Return?
• Where's My Amended Return?
• Timelines for an Amended Return
• Checking the Amended Tax Return Status
• What is the Process for Filing an Amended Return?
• When Do I have to File an Amended Return?
• I Amend
• Amended Tax Return Tips & Facts
• Conclusion

When Do I Need to File an Amended Return?

If you discovered you had made an error on your tax return, you would need to determine if that error warrants filing an amended return.  Many of the math errors on the return do not require amendment because the mistake is often caught as part of the return processing.  If you filed an electronic return, the error would be detected quickly.  However, if you filed a paper return, you can expect the processing to take 6 to 8 weeks.  Once the IRS determines the math error, they will send you a notice indicating the adjustment made and the final outcome.  They will give you a period of time to dispute the error; if you do not, they will assume they are correct and continue to process the return.  If the IRS does not catch it, you may want to correct it on your own.

Some mistakes are not as easily detected by the IRS and would likely be determined if audited. Other errors, such as unreported income, mismatches in the information reported to the IRS, will be detected eventually.  These can take a couple of years to catch by the IRS, and they will eventually be determined, and when detected, you will be assessed with penalties and interest.   

Below are some additional reasons to file an amended return:

• Change in Filing Status
• Overstated or Understated Income
• Overstated or Understated Deductions
• Missed Credits or Credit Taken in Error

Where's My Amended Return?

If you have filed an amended return, have not heard anything and are wondering, "where's my amended return"..  You are going to want to check the status of the amendment on the IRS website.  Look for "Where's my Amended Return?".

You will want to make sure you understand the typical timeline for processing an amended return before becoming concerned with how long it takes.  The processing of amended returns has a different priority when compared to the processing of new returns.  Below are the normally expected timelines for the processing of an amended return.  This will help you determine if your amended return is taking an abnormally long time or just within the typical processing timelines.

Timelines for an Amended Tax Return

Once filed, below are the typical timelines for processing an amended return.:

• It will take up to 3 weeks for the amended return to show up in the IRS's system
• It will take 16 weeks or more  for the return to be processed and an outcome to be determined.

If your amended return exceeds this timeline, you'll want to check the status on the IRS website.

Reason Why an Amended Return May be Delayed

Below are some reasons why the processing times may be delayed:

• The amended return has errors
• The amended return is incomplete
• The amended return was not signed
• The amendment has been returned to you requesting more information
• The amendment includes Form 8379, Injured Spouse Allocation
• Your return is subject to identity theft or fraud

Processing may also be delayed when the amended return needs:

• To be routed to a specialized area within the IRS
• Requires the bankruptcy code to be lifted
• Has been sent for review by a Revenue Officer
• The amended return has requested a reconsideration of a previous IRS decision

The Where's My Amended Return? tool cannot give you the status of the following returns or claims:

• Carryback applications and claims
• Injured spouse claims
• Failing to include Form 1040X return (just marking a Form 1040 as Amended U.S. Individual Income Tax Return)
• An amended return with a foreign address
• A business tax amended return
• An amended return is processed by a specialized unit—such as Examination or the  Bankruptcy Department.

Checking the Amended Return Status

It is best to keep checking in on the timeline of your return. Throughout the first three weeks, you will want to check to determine if the amended return has been accepted for processing.  Once accepted, you will want to allow the sixteen weeks for the return to be processed. Below is what you will need to be able to check the status of your amended return.

• Social Security Number or your Individual Tax ID Number
• Date of birth
• Zip Code

Armed with the above information, go to the IRS' Where's My Amended Return tool and follow the prompts. Once you have answered the security questions, the amended return's current status will be available.

What do the different statuses, and what do they mean?

Below are the potential statuses:

• Return received
• Return adjusted
• Return completed

Based on the IRS' site and according to the IRS Frequently Asked Questions on Amended Returns page, here's what each status indicates:

• Received: This indicates the return has been received and is being processed. It will take up to 16 weeks or more to complete processing.
• Adjusted: An adjustment has been made to your original return.  Depending on how the amendment impacts your tax return, this will result in either a tax refund, a balance due, or no change to your tax liability.
• Complete: The adjustment process has been completed, and the IRS will inform you of the outcome.

Note: The IRS’ “Where's My Amended Return” database updates once daily, typically at night.

What is the Process for Filing an Amended Tax Return?

Filing an amended tax return is a relatively straightforward process, and form 1040x is broken into three sections.

Column A

Column A is where you input the information from the original incorrect return.

Column C

Column C is where you input the information from the corrected, amended return.

Column B

Column B is the net effect of the changes between the original incorrect return and the corrected return and is reflected as the changes between column A and column C.

Additional Requirements

At the top of Form 1040X, indicate the tax year you are amending. If you are amending multiple returns, each will require a separate submission.  It is best to place each individual submission in a separate envelope, and it is best to send each separate amended return by certified mail.

In the narrative section of the amended return, you will want to explain the reason for the amendment.  It is best to explain the changes listed in column B, line by line.

Provide necessary supporting documentation such as W-2(s), 1099(s), or K-1(s) that caused the amendment. These documents should be listed in the order of the attachment sequence number as listed in the narrative.

Include a copy of both the corrected return and the original incorrect return.

If you owe the IRS money, you must include a check or money order with the amended return. Note: It is best not to attach the check to Form 1040X; place it within a small envelope marked payment enclosed. You may pay the additional balance online at the IRS's website's payment section.

Proper Packaging of the Amended Return

1. 1. Form 1040X and narrative if separate page, followed by a colored separator page.
   2. Supporting documentation, followed by a colored separator page.
   3. Copy of original incorrect Form 1040 and all supporting schedules marked “Original,” followed by a colored separator page.
   4. Copy of corrected Form 1040 and all supporting schedules marked “Corrected,” followed by a colored separator page.
   5. Check in a separate small envelope marked “Payment Enclosed” if you owe with the return.

When Do I Have to File an Amended Tax Return?

To receive a refund, you must file an amended return within three years from the date you filed your original return or within two years from the date you paid any tax due, whichever is later. If you filed your original return before the due date (usually April 15), it's considered filed on the due date.

There are unique situations that may extend the refund statute beyond the three years:

Three years from the extended due date for a year, you either:

• Have an NOL carried over as a result of a Net Operating Loss
• Have an NOL carried back as a result of a Net Operating Loss

You may have seven years to request a refund due for either of these:

• Worthless security
• Nonbusiness bad debt

You may have ten years from the due date of the return (without any extensions) to:

• Claim a refund or change a foreign tax credit

• Claim a deduction for foreign taxes paid

Note: You can amend a return at any time to reduce a debt, but you can generally only claim a refund based on the above-described refund statutes

I Amended MY Return and have Not Received My Refund

If you have waited at least 16 weeks and there is still no indication on the IRS’  'Where's My Amended Return' tool, it is time to call the IRS at 1-866-464-2050 to inquire about your case.

Amended Tax Return Tips & Facts

You Don't Always Have to File

Some tax return mistakes do not require an amendment. Math mistakes, especially minor ones, are a perfect example.  The IRS will make these correction on their own and notify you of the correct.

Can the Amended Return be Filed Electronically?

Based on the IRS’ website, only the current year and one year back can be electronically filed, and all other returns must be filed in paper format.

Do I have to Amend My State Tax Return?

If your amended federal return affects the state return, you should also amend the state return. Some states require you to amend your state return within a specified time after filing the amended federal return.

Audit

Conclusive evidence that amended tax forms triggers an audits does not exist.  However, most tax professionals tend to recognize a relationship between the two. Be aware that the IRS may investigate your case, especially if you ask for a large refund.

Conclusion

Don’t wait for the IRS to come to you.  If you know that the return is incorrect, you should amend it to avoid potential penalties and interest. If you do not feel comfortable amending the return yourself, seek out a Certified Tax Resolution Specialist or qualified tax professional.