Filing amendment - inputs please

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Topic Author
sman09
Posts: 479
Joined: Fri Mar 23, 2018 12:02 am

Filing amendment - inputs please

Post by sman09 »

We request for some guidance and inputs with filing an amended tax return. Here are the details for you to help with the request:

Shortly after filing our tax returns for 2020 earlier this year (through our tax preparer with whom we have been working for several years now) we found that we had missed to include (send them) a dividend statement to factor in our total income. We informed our preparer and paid the amendment fee for them to take care of the process besides mailing a check with the additional tax due (under $10).

A few months later we received a letter asking us to explain why we have made this extra tax payment and that if the explanation is not received the money will be refunded to us.

When we checked about this with our preparer they found out that the 1040x they had filed online for us had not been accepted/go through. So they sent us a copy of the amended forms for us to print and send as paper copy.

- Is there a deadline by when we need to send the amended paper form given that Dec-31 is around and the tax year we are referring to is 2020?


Thank you for your guidance.
HomeStretch
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Joined: Thu Dec 27, 2018 2:06 pm

Re: Filing amendment - inputs please

Post by HomeStretch »

See the instructions to Form 1040X or the linked IRS FAQ, below, regarding Form 1040X deadlines.
https://www.irs.gov/faqs/irs-procedures ... form-1040x

Yes, there is a deadline but it is not imminent for your 2020 Form 1040X. Mail it soon with tracking so you have proof of delivery. The IRS has processing delays for paper returns so it’s possible the IRS might refund your $10 payment before the amended return is processed. You can check IRS.gov for the status of your Form 1040X processing.
Topic Author
sman09
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Joined: Fri Mar 23, 2018 12:02 am

Re: Filing amendment - inputs please

Post by sman09 »

Thank you very much HomeStretch for the information and help! Good to know all is well.

We also noticed that there was a small error in the amendment document shared by our tax preparer relating to the reason for the amendment - receiving the dividend document after filing the tax return vs us missing to send it to the tax-preparer until after the filing was done.

Is there a way for us to get this addressed ourselves without inconveniencing our tax preparer - could we possibly download a form fill all the same information as in the document shared by the tax preparer and hand write the correct reason for the amendment? or should they all be only in a type fashion as what one would get from a tax software?

Thank you once again!
MarkNYC
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Re: Filing amendment - inputs please

Post by MarkNYC »

I can understand your reasons for wanting to file an amended return, even when the additional tax is small: to do the right thing, to pay what you legitimately owe, to have a clear conscience, etc. But I would suggest to you and others in the future NOT to file an amended return if the additional tax is under $10. Here are some reasons why:

1. There is no legal requirement to file an amended return
2. If/when the IRS becomes aware of the unreported income, it may not bother issuing the tax assessment when it's so small
3. If the IRS does assess, you can quickly and easily pay it then. There will be no penalties, and the interest will be pennies.
4. You can save yourself the time and expense of the amended return preparation and filing.
5. Technical/filing problems can occur with amended returns, causing inconvenient correspondence and delays - this did happen to you.
6. It will cost the IRS more to process the amended return than the $8 or so in additional tax it collects, so you'll be saving the government some money.
7. With covid and budget restraints, the IRS is understaffed and has a significant backlog of unprocessed returns, so you'll be doing yourself, the IRS, and other taxpayers a favor by not filing.

Whether the additional tax dollar cut-off for not filing should be $10 or something higher is an individual choice. Mine would be higher.
Asyouwish
Posts: 370
Joined: Tue Aug 04, 2020 6:20 am

Re: Filing amendment - inputs please

Post by Asyouwish »

We also noticed that there was a small error in the amendment document shared by our tax preparer relating to the reason for the amendment - receiving the dividend document after filing the tax return vs us missing to send it to the tax-preparer until after the filing was done.

Is there a way for us to get this addressed ourselves without inconveniencing our tax preparer - could we possibly download a form fill all the same information as in the document shared by the tax preparer and hand write the correct reason for the amendment? or should they all be only in a type fashion as what one would get from a tax software?
An amended return can be hand written if you want. If you don’t like the explanation in Part III, then go ahead and hand write whatever you want. The IRS doesn’t want or need long wordy explanations. Simple facts will do. “Forgot to file 1099-Div” will suffice. The IRS will understand. They process millions of amended returns every year. They also get copies of the 1099 form. So they know about the dividend income.

Agree with MarkNYC. This amended return was not critical. But since you already sent the payment, you need to follow through.
Topic Author
sman09
Posts: 479
Joined: Fri Mar 23, 2018 12:02 am

Re: Filing amendment - inputs please

Post by sman09 »

MarkNYC wrote: Fri Dec 31, 2021 1:29 pm I can understand your reasons for wanting to file an amended return, even when the additional tax is small: to do the right thing, to pay what you legitimately owe, to have a clear conscience, etc. But I would suggest to you and others in the future NOT to file an amended return if the additional tax is under $10. Here are some reasons why:

1. There is no legal requirement to file an amended return
2. If/when the IRS becomes aware of the unreported income, it may not bother issuing the tax assessment when it's so small
3. If the IRS does assess, you can quickly and easily pay it then. There will be no penalties, and the interest will be pennies.
4. You can save yourself the time and expense of the amended return preparation and filing.
5. Technical/filing problems can occur with amended returns, causing inconvenient correspondence and delays - this did happen to you.
6. It will cost the IRS more to process the amended return than the $8 or so in additional tax it collects, so you'll be saving the government some money.
7. With covid and budget restraints, the IRS is understaffed and has a significant backlog of unprocessed returns, so you'll be doing yourself, the IRS, and other taxpayers a favor by not filing.

Whether the additional tax dollar cut-off for not filing should be $10 or something higher is an individual choice. Mine would be higher.
Thank you very much MarkNYC for sharing these pointers!

I was surprised when i read this "But I would suggest to you and others in the future NOT to file an amended return if the additional tax is under $10." but reading the full post helped understand the logic.
Topic Author
sman09
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Joined: Fri Mar 23, 2018 12:02 am

Re: Filing amendment - inputs please

Post by sman09 »

Asyouwish wrote: Fri Dec 31, 2021 2:35 pm
We also noticed that there was a small error in the amendment document shared by our tax preparer relating to the reason for the amendment - receiving the dividend document after filing the tax return vs us missing to send it to the tax-preparer until after the filing was done.

Is there a way for us to get this addressed ourselves without inconveniencing our tax preparer - could we possibly download a form fill all the same information as in the document shared by the tax preparer and hand write the correct reason for the amendment? or should they all be only in a type fashion as what one would get from a tax software?
An amended return can be hand written if you want. If you don’t like the explanation in Part III, then go ahead and hand write whatever you want. The IRS doesn’t want or need long wordy explanations. Simple facts will do. “Forgot to file 1099-Div” will suffice. The IRS will understand. They process millions of amended returns every year. They also get copies of the 1099 form. So they know about the dividend income.

Agree with MarkNYC. This amended return was not critical. But since you already sent the payment, you need to follow through.
Thank you Asyouwish for the inputs. Good to know.

Also, referring to MarkNYC's point about the cost involved, that's true - we paid $50 for our tax preparer to make the amendment to fix this <$10 issue and the form has not even gone through. :o

I had actually asked for their help to edit the reason and did not hear back from them even after couple of reminders and so thought of attending to it myself. I did not want to annoy them by requesting them one more time.

They had also made a lapse in our state tax form that would have made us eligible to get a tax refund/reimbursement for contribution to 529 plan. They insisted that all is well and that the 529 plan contribution has been accounted for, but talking to the customer support at the State's 529 plan office (who looked into our tax return) made us understand that our tax preparer had made some lapses. Is it reasonable to request that they file the amendment for the state form without additional fee to help us get the refund?

Thank you!
talzara
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Re: Filing amendment - inputs please

Post by talzara »

MarkNYC wrote: Fri Dec 31, 2021 1:29 pm 6. It will cost the IRS more to process the amended return than the $8 or so in additional tax it collects, so you'll be saving the government some money.
I would not amend for $10 either, but amended returns are very cheap for the IRS to process. This one is only a one-line adjustment.
Asyouwish
Posts: 370
Joined: Tue Aug 04, 2020 6:20 am

Re: Filing amendment - inputs please

Post by Asyouwish »

it reasonable to request that they file the amendment for the state form without additional fee to help us get the refund?
It depends on your agreement with them. Do they guarantee their work? Is this their mistake? Does your fee include amendments or fixing errors. Did you sign an engagement letter? These are things to ask your tax pro.
Topic Author
sman09
Posts: 479
Joined: Fri Mar 23, 2018 12:02 am

Re: Filing amendment - inputs please

Post by sman09 »

Asyouwish wrote: Fri Dec 31, 2021 2:35 pm
We also noticed that there was a small error in the amendment document shared by our tax preparer relating to the reason for the amendment - receiving the dividend document after filing the tax return vs us missing to send it to the tax-preparer until after the filing was done.

Is there a way for us to get this addressed ourselves without inconveniencing our tax preparer - could we possibly download a form fill all the same information as in the document shared by the tax preparer and hand write the correct reason for the amendment? or should they all be only in a type fashion as what one would get from a tax software?
An amended return can be hand written if you want. If you don’t like the explanation in Part III, then go ahead and hand write whatever you want. The IRS doesn’t want or need long wordy explanations. Simple facts will do. “Forgot to file 1099-Div” will suffice. The IRS will understand. They process millions of amended returns every year. They also get copies of the 1099 form. So they know about the dividend income.

Agree with MarkNYC. This amended return was not critical. But since you already sent the payment, you need to follow through.
Thanks again.

So, in this case, if we were to hand write and submit, we should drop our tax preparer's name/company name right, as we plan on completing the document by ourselves, signing and submitting it.

Also, is there a deadline for these documents as it's already 2022?
Asyouwish
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Joined: Tue Aug 04, 2020 6:20 am

Re: Filing amendment - inputs please

Post by Asyouwish »

So, in this case, if we were to hand write and submit, we should drop our tax preparer's name/company name right, as we plan on completing the document by ourselves, signing and submitting it.
If you are self preparing, sure you can remove the name.
Also, is there a deadline for these documents as it's already 2022?
You have three years from the due date to file an amended return. For 2020 you have until April 15, 2024.
Topic Author
sman09
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Joined: Fri Mar 23, 2018 12:02 am

Re: Filing amendment - inputs please

Post by sman09 »

Thank you very much Asyouwish for your inputs once again. Good to know there is still time.

Also, the original tax return was prepared by them.

The amended return was also prepared by them but as we are not able to get their response yet on our request to edit the reason for the amendment, we thought of handcopying all that they have entered and submitting it on our own.

Thinking again, we are wondering whether the reason the tax preparer had put "received the form after filing tax return" was put from their perspective (the perspective of the tax-preparer) since we were able to get it to them only after the tax return was filed. if so, the form they sent is good and we could submit it as is.

if the reason is included from the standpoint of the individuals for whom the tax return is filed, then it should say, missed to include with original returns.

any thoughts please?
Asyouwish
Posts: 370
Joined: Tue Aug 04, 2020 6:20 am

Re: Filing amendment - inputs please

Post by Asyouwish »

sman09 wrote: Tue Jan 11, 2022 3:21 pm Thank you very much Asyouwish for your inputs once again. Good to know there is still time.

Also, the original tax return was prepared by them.

The amended return was also prepared by them but as we are not able to get their response yet on our request to edit the reason for the amendment, we thought of handcopying all that they have entered and submitting it on our own.

Thinking again, we are wondering whether the reason the tax preparer had put "received the form after filing tax return" was put from their perspective (the perspective of the tax-preparer) since we were able to get it to them only after the tax return was filed. if so, the form they sent is good and we could submit it as is.

if the reason is included from the standpoint of the individuals for whom the tax return is filed, then it should say, missed to include with original returns.

any thoughts please?
You are making this more complicated than it needs to be. It doesn’t matter if you say “oops I forgot” or “oops the form came late”. As long as you identify it as a Form 1099-DIV. They really don’t care “why”. (Especially over $10).
Topic Author
sman09
Posts: 479
Joined: Fri Mar 23, 2018 12:02 am

Re: Filing amendment - inputs please

Post by sman09 »

Asyouwish wrote: Tue Jan 11, 2022 8:18 pm
sman09 wrote: Tue Jan 11, 2022 3:21 pm Thank you very much Asyouwish for your inputs once again. Good to know there is still time.

Also, the original tax return was prepared by them.

The amended return was also prepared by them but as we are not able to get their response yet on our request to edit the reason for the amendment, we thought of handcopying all that they have entered and submitting it on our own.

Thinking again, we are wondering whether the reason the tax preparer had put "received the form after filing tax return" was put from their perspective (the perspective of the tax-preparer) since we were able to get it to them only after the tax return was filed. if so, the form they sent is good and we could submit it as is.

if the reason is included from the standpoint of the individuals for whom the tax return is filed, then it should say, missed to include with original returns.

any thoughts please?
You are making this more complicated than it needs to be. It doesn’t matter if you say “oops I forgot” or “oops the form came late”. As long as you identify it as a Form 1099-DIV. They really don’t care “why”. (Especially over $10).
I agree. thank you very much for the clarification.

Last week was a bit of a stressful week, because of a letter from the treasury sent individually in both our names on Monday that made me check again.

Looking up online about why jointly filing spouses would receive letters individually we became very concerned as there were a variety of reasons listed that made us feel very bad - that while being extra careful to pay every $ we owe, we are being a sent a notice (based on what we read online).

We thought our pending payment (<$10) going through but our electronic amended return not going through must have triggered it. As we were yet to submit the the paper amended form because of the minor issue in the reason for the amendment, we thought of rushing and submitting it or being ready to explain the reason for why we did not file it.

Turns out it was a letter informing us about the advanced CTC amount we were credited last year. we thought it was the delay in filing the amendment paperwork (as the electronically filed amendment by our tax-preparer did not go through) .... phew.... worried about what the letter may be we did not open it till the 4th day after receiving it. :?
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