Amending your tax return is basically sending the IRS a new tax return, correcting errors made on the last tax return you filed for that year. Though it is not advised, you technically can amend more than once. If there was anything wrong with the last one, amend your tax return. Where some vital facts of amendments are important, you will want to ensure your amendment is accurate. Keep in mind that the first amendments cannot be electronically filed, they are done with paperwork and mailing documents to personnel which makes them subject to human review. With this in mind, we at Mecham Dicus & Company would like to continue to elaborate on the subject.
Amended Tax Return Timeline
The IRS publicly states that an amendment will take up to 3 weeks to even register in their system, and up to 16 weeks to process. Though the set the expectation it will take quite some time for the IRS to give you any feedback on your amendment, they have been known to work faster than that plenty of times. A letter is sent you especially those who are anxiously awaiting any kind of refund, they usually send a yes, we accept or no, we do not accept letter to you.
Filing an Amended Tax Return after 3 Years
The 3rd amendment can be filed for any tax year. You have a limited time to claim that refund for those expecting a refund, which is 3 years from the due date, or 2 years from the tax paid. For example, the 3-year rule means they get no refund if they amend their 2013 tax return tomorrow. Due to less than what they have paid then you can recoup any monies actually paid in the last 2 years despite it being more than 3 years of the original due date. If someone owed a bunch of money in 2013 and have been paying on that debt over time, and the amendment lowers the total amount, the IRS is forced to calculate the interest and penalties they charge based on the new lower number instead of the higher amount due that was originally filed.
Forgot to Include Income on Tax Return
The IRS states you need to amend your tax return and pay them accordingly. A common scenario is when you forgot about that $35,000.00 withdrawal from your 401k to do some necessary home improvements or other needs and never got the tax form in the mail, only to remember 2 weeks after you filed your taxes. This is because you simply need to amend your tax return, even when they take the taxes out, the income and the taxes taken out still have to be added to your tax return. $35,000.00 is quite the change in income. Any modest increase in income needs to be properly reported, including if the result is that the taxes taken out were perfect and you owe nothing extra and get nothing back.