When Should You File an Amended Tax Return? A Guide for DFW Taxpayers.

Discovering a mistake on a tax return can be unsettling, but errors do happen. Income may be left off, a deduction may have been missed, a dependent may have been reported incorrectly, or new information may become available after the original return was filed.

For taxpayers in Arlington, Mansfield, Fort Worth, Kennedale, Dallas, Lewisville and surrounding Texas communities, an amended tax return may be the right way to correct certain issues.

What Is an Amended Tax Return?

For individual federal income tax returns, Form 1040-X is generally used to correct a previously filed Form 1040, 1040-SR, or 1040-NR.

According to the IRS, common reasons for filing an amended return include changes to filing status, income, deductions, credits, dependents, or tax liability.

An amended return is not simply a replacement copy of the original filing. It explains what changed and recalculates the return based on the corrected information.

Common Reasons You May Need to Amend.

You may need to consider an amended tax return when:

• You received an additional tax document after filing.
• Income was omitted or reported incorrectly.
• Your filing status should be changed.
• A dependent was incorrectly claimed or omitted.
• You discovered an eligible deduction or credit that was missed.
• A business-related item was reported incorrectly.
• The IRS previously adjusted the return and additional corrections are needed.
• A professional tax review can help determine whether an amendment is necessary and what effect it may have.

Not Every Error Requires an Amendment.

Some taxpayers immediately assume that every error requires Form 1040-X. That is not always the case.

The IRS may correct certain mathematical or clerical errors during processing. In other situations, the IRS may separately request a missing form or schedule.

Filing an unnecessary amendment can create additional processing time and complexity. Before submitting a corrected return, it is worth determining whether an amendment is actually required.

How Long Do You Have to File an Amended Return?

When an amended return is being filed to claim a refund, the IRS generally applies time limits. In many cases, the deadline is within three years from the date the original return was filed or two years from the date the tax was paid, whichever is later. Exceptions can apply.

Because timing rules vary by situation, taxpayers who believe they are owed a refund should not delay reviewing the issue.

What If the Amendment Creates Additional Tax Due?

An amended return can sometimes reveal that additional tax is owed.

If that happens, the next question becomes how to address the liability. Depending on the situation, the taxpayer may be able to pay the additional amount or explore available IRS payment and tax resolution options.

Waiting to correct a known issue simply because the correction may increase the balance can create larger problems later.

Amended Returns and IRS Audits.

If you are already under examination or have received an IRS notice, do not automatically file an amended return without first evaluating how the amendment interacts with the IRS matter.

The timing, content, and purpose of the amendment can matter. A professional familiar with IRS procedures can help you determine how to address a correction when an audit or active IRS issue is already underway.

Local Amended Tax Return Help in Arlington and Dallas-Fort Worth.

Liberty Financial Solutions assists individuals and businesses with amended returns, tax preparation, IRS notices, tax audits, tax resolution, bookkeeping, and related financial matters.

For taxpayers searching for amended tax return help in Arlington TX, tax amendment assistance in Fort Worth, or IRS tax help in Mansfield, Kennedale, Dallas, Lewisville, Grand Prairie, Irving, Bedford, or Euless, our team can review your circumstances and help determine the appropriate next step.

Think Your Tax Return Needs to Be Corrected?

Before filing an amendment, make sure you understand why the return needs to change and what effect that change may have.

Liberty Financial Solutions can review your prior return, supporting records, and IRS correspondence to help you determine whether an amended return is appropriate.

Contact Liberty Financial Solutions at www.lfsolutions.us to schedule a consultation.