If you discover an error or omission on your tax return you may have to file an amended return to correct the error. However, in certain circumstances it may not be necessary to file the amendment. The following will provide you additional information regarding amended returns.

When should I file an amended return?

An amended return needs to be filed if changes need to be made to essential elements reported on your return such as:

• Filing status
• Dependents
• Income
• Deductions
• Credits
• Tax Liability

The amended return replaces the original return. It is important that you retain the amended return.

When is an amended return not required?

The most commons instances are:

• If the IRS notifies you that during the processing of your return it corrected an error on the return. The most common of these are computational errors.
• If the IRS notifies you that forms, schedules or statements are missing from the return and the IRS requests that you submit the missing item(s). Once you submit the requested items, the IRS will process the return without you having to file an amended return.

What if I am not sure as to whether I need to file an amended return or not?

The best thing to do in this circumstance is to speak to your tax professional. However, if you prepared the return yourself, or cannot speak to your tax professional, you can use the “Should I file an amended return” tool at IRS.gov. Keep in mind that the IRS is not giving you legal or accounting advice. The IRS is merely providing a tool and is relying on you to enter the correct information and decide whether you need to amend. See: https://www.irs.gov/help/ita/should-i-file-an-amended-return

How much time do I have to file an amended return?

An amended return must be filed within three years of the original filing date or two years from the date the tax was paid, whichever is later. If the return was filed early (that is, prior to the April 15 due date), the three-year period begins to run on April 15.

Note that there are special rules for returns which involve net operating losses, foreign tax credits, bad debts, carrybacks, disaster relief situations, combat zone service and other special tax situations. Taxpayers with special qualifying tax situations may have more time to file an amended return.

How do I file an amended return?

A return is amended by filing a Form 1040X. Included with the 1040X is a corrected Form 1040, documentation supporting the amendment and an explanation as to why the return is being amended.

What if I owe additional taxes?

If the amended return shows that additional taxes are owed, these taxes must be paid when you file the amended return. If the amended return is filed after the due date of the original return, you will owe interest and penalties on the additional tax due from the due date of the original return.

What if I am owed a refund?

If the amended return shows that you are owed a refund, the IRS will issue the refund to you once the amended return is processed. The IRS generally has 45 days to process your refund. If the IRS does not issue the refund within the 45 days, you will receive interest from the date the amended return was received. This interest will be reported to you as income and is included in the tax return for the year in which you receive the interest.

If you do not file the amended return with the time frame set forth above, the government will keep any refund due you. This is also true of original returns which is why it is so important that returns be timely filed.

How long will it take the IRS to process an amended return?

It generally takes the IRS 8 to 12 weeks to process an amended return. For complicated returns the processing time can take much longer than that. You can check the status of your amended return three weeks after filing it by going to “Where’s my Amended Return” at https://www.irs.gov/filing/wheres-my-amended-return

State Tax Implications

Florida does not have a personal income tax. Therefore, filing an amendment to an individual income tax return has no state tax implications. However, for states that do impose personal income taxes, the filing of an amended federal income tax return will affect the state income tax return and the appropriate state tax agency needs to be contacted regarding the filing of an amended state income tax return.

Since Florida does impose corporate income taxes, the filing of an amendment to a corporate federal income tax return will have an effect. This scenario is beyond the scope of this article. Consult your tax professional and/or the Florida Department of Revenue.