When Should You File An Amended Tax Return?

An amended tax return is a document that makes additions or corrections to an existing filing. There are lots of situations that people ask tax attorneys about in terms of making amendments. Let's take a look at a few scenarios and what a tax attorney might tell you to do.

Retroactive Tax Breaks

Laws come and go with every Congressional session, and that means it can be challenging to take advantage of all the potential tax breaks. Sometimes, laws are implemented after filings for a tax year have been submitted. These laws may apply to those tax years, and payers have a right to take advantage of them by filing amended returns that claim the deductions. Folks interested in making such moves should discuss their situations with tax attorneys first. If the government accepts the amended return, you'll receive a refund for the difference between your previous bill and your amended one.

New Information

It's not uncommon to fail to have the complete picture at the time you filed a return. When new information comes in that might influence what you legally owe in taxes, you must report that information. Likewise, you should attach an appropriate payment if you believe you'll end up owing a specific amount. If the changes would leave the government owing you money, this is another situation where a refund would be issued.

An example of new information might be if you had to take a loss on an insured piece of property. You might have expected the insurance to cover it only to learn the insurance claim was rejected. This would require an adjustment to your taxes to claim the loss on your taxes.

Missing Paperwork

Most tax attorneys tell their clients to not fret about this problem as long as they appear to have paid the right total. The IRS uses a lot of automated systems, and they're very good at determining whether enough supporting documentation accompanied a return.

If there's a problem, you should receive some sort of notice from the IRS. When you get the notice, make sure to share it with your tax attorney and to make every effort to respond to it promptly. This will likely ensure you'll avoid any penalties. Also, you may have to provide supporting documentation, especially if the government considers the lack of documentation problematic. In most cases, though, you just send the missing pieces and get on with your life.

Reach out to a tax attorney for more information.