A question for USA income tax / accounting smarties

Discussion in 'The Green Room' started by Chaos Descending, Apr 20, 2021.

  1. Chaos Descending

    Chaos Descending Mostly Harmless

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    Let's say that an individual filed his Federal 1040A and expects a decent refund.

    Let's say that this individual made a serious mistake in said tax return and only caught it after said filing was complete.
    Let's say that this mistake means that the individual would still get a refund, just smaller than originally projected.

    How does one follow up on this?

    Does one file a corrected / amended return IMMEDIATELY? Or does one wait until the return is processed and the original refund delivered, THEN file the amended / corrected return and mail in the appropriate payment?

    My concern for this hypothetical individual is that if one files said amended / corrected return too soon, the IRS will have a lot of room to create embarrassing blunders that make everything much too complicated.

    What say the resident experts?
  2. tafkats

    tafkats That'll put marzipan in your pie plate, bingo! Moderator

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    How big is the difference?

    If I remember correctly, owing less than $1,000 on your taxes doesn't lead to any late penalties, but if you owe more than $1,000 they can start to add up. So in that case, waiting to file an amended return could come back to bite you.

    I assume that, even if the mail ends up opened in the wrong order or whatever, a 1040-X will automatically supersede a 1040 even if the 1040 is processed later.
  3. Chaos Descending

    Chaos Descending Mostly Harmless

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    I am not 100% sure how much the difference is going to be. I haven't fully crunched the numbers yet.
  4. Chaos Descending

    Chaos Descending Mostly Harmless

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    And actually this would be an E-File issue anyway.
  5. Jenee

    Jenee Ind. Jenee of Winterfell

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    I, personally, would call the IRS, knowing I'll be on hold for several hours, and ask the IRS directly.

    Done it before. Will probably do it again.
  6. steve2^4

    steve2^4 Aged Meat

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    I'd file an amended return to avoid name calling.

    If you get the full refund, don't spend it. Send it to me for safe keeping.
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  7. ed629

    ed629 Morally Inept Banned

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  8. oldfella1962

    oldfella1962 the only real finish line

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    I've done similar things as you describe. The IRS advises you not send in an amendment while they are still processing your original submission. :nono: It can actually delay getting the proper refund amount. Quite often (if you aren't itemizing and you just have a very simple tax situation) the IRS will catch your mistake anyway and send you the documentation explaining why your refund amount is different than what you thought.
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  9. oldfella1962

    oldfella1962 the only real finish line

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    I have called the IRS too. Sometimes it takes a while, sometimes you get through quickly. But every time they helped me out a great deal.
  10. Chaos Descending

    Chaos Descending Mostly Harmless

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    I'm itemizing.
    Last edited: Apr 20, 2021
  11. oldfella1962

    oldfella1962 the only real finish line

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    oh I see. Then hopefully your taxes won't go to the bottom of the pile.
  12. Chaos Descending

    Chaos Descending Mostly Harmless

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    Well, it's already been two months since I filed, so...
  13. Bailey

    Bailey It's always Christmas Eve Super Moderator

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    Everything about US taxes confuses and scares me.
  14. steve2^4

    steve2^4 Aged Meat

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  15. tafkats

    tafkats That'll put marzipan in your pie plate, bingo! Moderator

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    The tax prep industry lobby and the anti-tax lobby are both equally committed to making the filing process as painful as possible.
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