Many times, taxpayers realize they made an error after they have already filed their tax returns. In cases of a miscalculation, taxpayers will not need to amend their return because the IRS will correct math errors. Here are the instances where an amended return needs to be filed, including an error in filing status, income figures, tax deductions or credits.
The main reason to file an IRS amended return is to correct the information provided in the return and avoid future problems, such as tax debt, penalties and interest. The IRS only requires taxpayers to make changes to any errors that change the amount taxpayers need to pay to the IRS. Therefore, we advise taxpayers to immediately file an amended return to inform the IRS of the error and make the required modifications.
Taxpayers who file an amended return will use IRS Form 1040X Amended U.S. Individual Income Tax Return to correct an error in previously filed IRS Forms 1040, 1040 A, 1040 EZ, 1040 NR, or 1040 NR-EZ.
Taxpayers who will be receiving an additional refund after filing an amended return may need to wait until they receive their original refund. In cases of an IRS amended return where taxpayers owe additional taxes to the government, they may use Form 1040 X to pay the remaining tax immediately to avoid penalties and interest. Any taxes owed earn interest and penalty charges.
If a taxpayer made errors on their tax return for multiple years, they will need to use a separate 1040 X form for each year needing an amendment. We remind taxpayers to state the year of the return they are amending at the top of each Form 1040 X they file.
Taxpayers have three years to collect any additional refund due to an amended return. For changes in filing status, dependents, deductions, income and/or tax credits that can lead to tax debt, taxpayers must pay the tax amount owed by the filing date for that current tax year, or the debt will begin to accrue interest and penalties. Taxpayers are able to resolve any tax debt from amended returns with available IRS payment programs.