How to Amend a Tax Return Due to an IRS Error

How to Amend a Tax Return Due to an IRS Error

Making a mistake on your taxes is super common – I mean, the tax code is complicated! But don’t worry, if the IRS made an error on your return, you can fix it by filing an amended tax return. Here’s what you need to know about amending your return to correct an IRS error.

When the IRS Makes a Mistake

The IRS is run by humans, and humans make mistakes sometimes! The good news is, the IRS has a process for correcting errors on your tax return. Here are some common IRS mistakes:

• Math errors – like adding things up wrong
• Forgetting to include info you sent them
• Misapplying your payments
• Misunderstanding your deductions

You’ll know if the IRS made a mistake if you get a notice in the mail from them. It’ll explain the error and how much you now owe (or are getting refunded).
If it’s a small math error or something, you usually don’t need to amend your return – the IRS will just fix it for you. But for major mistakes, you’ll want to file an amended return.

When to File an Amended Return

Ok, so the IRS screwed up and you need to set the record straight. Here are some cases when you’ll want to file an amended tax return:

• The IRS says you owe a lot more taxes than you actually do
• The IRS reduced your refund by a significant amount
• The IRS denied deductions or credits you qualify for

Basically, if there’s a major change in how much you owe or are getting back, file an amended return. The IRS isn’t perfect – you gotta look out for yourself!

How to File an Amended Tax Return

Filing an amended tax return is pretty easy – just follow these steps:

1. Get IRS Form 1040X. You can download it from the IRS website.
2. Fill it out, explaining the error the IRS made and correcting it.
3. Attach any documents that support your changes.
4. Mail the form and docs to the IRS address listed on the form instructions.
5. Make sure to keep copies of everything for your records!

Some key things when filling out Form 1040X:

• Column A shows your original return numbers
• Column B shows the corrected amounts
• Column C shows the difference between A and B

So if the IRS made a mistake on your income amount, you’d put the incorrect IRS number in Column A, the right number in Column B, and the difference in Column C.
And don’t forget to attach any new documents, like a corrected W2 or 1099 form that proves the IRS error. This will help speed things up.

When to File an Amended Return

You typically have 3 years to file an amended return to correct an IRS mistake. The clock starts ticking on the filing deadline for that tax year. So say you filed your 2019 taxes on time in April 2020. You’d have until April 2023 to amend the 2019 return if the IRS messed up.
If you need more time for some reason, you can file for an extension. But don’t wait too long – the farther from the filing deadline you get, the harder it might be to track down old tax documents if you need them.

After Filing an Amended Return

Once you’ve filed an amended tax return, here’s what to expect:

• The IRS will process the changes and correct your account.
• You’ll get a notice explaining the adjustments they made.
• If you owe more tax, the notice will show the amount and payment options.
• If you’re due a bigger refund, they’ll send it your way!

It can take up to 16 weeks for the IRS to process an amended return. I know, it’s a bummer to wait that long! But on the bright side, you’re getting credit for the taxes you rightfully owe or getting your full refund.
One last tip – make sure to respond to any IRS notices about your amended return. This helps things go smoothly!

Mistakes to Avoid

Filing an amended tax return is pretty straightforward, but here are some common mistakes to avoid:

• Forgetting to include newly corrected W-2s or 1099s – these are your proof!
• Leaving out required information on Form 1040X – double check the instructions
• Not signing and dating the amended return – gotta make it official!
• Mailing it to the wrong IRS address – triple check where to send it
• Not making a payment if you owe – include a check or the IRS will charge interest

Avoiding these simple mistakes means a smoother process fixing that IRS error!

Getting Help with Amended Returns

Dealing with the IRS can be intimidating, but you’ve got this! Here are some tips if you need help amending your tax return:

• Consult a tax pro – they do this stuff all the time
• Use tax software – it walks you through everything
• Check out free tax clinics – they help low income taxpayers
• Call the IRS helpline – they can answer questions

And if you’re really confused, just take a deep breath! Lots of people have to amend their returns – including me last year when the IRS goofed. Just tackle it step-by-step and before you know it, your return will be fixed.

You’ve got this! Don’t let an IRS mistake throw you off. Just grab Form 1040X, make the corrections, and get the tax refund or resolution you deserve.

References

[1] IRS Topic 308 – Amended Returns
[2] IRS: Mistakes Happen – When to File an Amended Return
[3] Journal of Accountancy: Amending a Tax Return