Amend Prior Year Tax Returns

At GAMARRA, CPA we prepare and filed amended tax returns. Below are a list of frequently asked questions by our clients:

Question: I did not report a W-2, 1099-Misc, or interest income on my original tax return - should I amend?

Answer: Yes, if you did not report all your earnings then the IRS and State will detect the deficiency and will provide you a notice. However, you should file prior to receive the notice to reduce the penalties and interest. As such, it is in your best interest to file an amended tax return.

Question: I have a rental property in a foreign country and do I need to report earnings?

Answer: Yes, you are subject to world wide income. As such, you will be required to report all your earnings and investments overseas.

Question: I am amending a tax return and was due a refund after amending the tax return. Will I get a refund?

Answer: If amending your tax returns and a refund is request three years from the time of amendment, then you will get a refund. If three years has exceeded from the time of amending, you will not get a refund nor a credit for the tax due.

If you discover an error after filing your return, you may need to amend your return. The IRS may correct mathematical or clerical errors on a return and may accept returns without certain required forms or schedules. In these instances, there's no need to amend your return. However, do file an amended return if there's a change in your filing status, income, deductions, or credits. Use Form 1040X (PDF), Amended U.S. Individual Income Tax Return, to correct a previously filed Form 1040 (PDF), Form 1040A (PDF), Form 1040EZ (PDF), Form 1040NR (PDF), Form 1040NR-EZ (PDF), or to change amounts previously adjusted by the IRS. You can also use Form 1040X to make a claim for a carry back due to a loss or unused credit; however, you may also be able to use Form 1045 (PDF), Application for Tentative Refund, instead of Form 1040X. Also, if the Form 8938 (PDF), Statement of Specified Foreign Financial Assets, applies to you, file it with an annual return or an amended return. See the Form 8938 Instructions for more information.

If you owe additional tax for a tax year for which the due date for filing hasn't passed, you can avoid penalties and interest if you file Form 1040X and pay the tax by the due date for that year (without regard to any extension of time to file). If the due date falls on a Saturday, Sunday, or legal holiday, filing the form and paying the tax is timely if filed or paid the next business day. If you file after the unextended due date, don't include any interest or penalties on Form 1040X; they will be adjusted accordingly.

Generally, to claim a refund, you must file Form 1040X within 3 years after the date you filed your original returner within 2 years after the date you paid the tax, whichever is later. Returns filed before the due date (without regard to extensions) are considered filed on the due date. Special rules apply for refund claims relating to net operating losses, foreign tax credits, bad debts, and other issues. For more information about amending a return, refer to the Form 1040X Instructions and What If I Made a Mistake? in Chapter 1 of Publication 17, Your Federal Income Tax for Individuals.