How To Amend A Tax Return Submitted by: The Open Press
(OPENPRESS) April 13, 2010 -- Do you know how to amend a tax return? Although this is not something that you ever want to do, mistakes can happen – especially on tax returns. It is important that you amend your return if you find something wrong. There are several steps to take:
1. Determine what mistakes you made. Before we go any further, keep in mind that the size of the mistake does not matter. What does matter is that you make the right change to ensure that your return is 100 percent accurate.
2. Use Form 1040X. This is the form that allows you to quickly amend a tax return. The IRS tries to make this process as simple as possible, and with Form 1040X they have done just that. This is the only way to amend a tax return so you do not really have any other option. On this form the IRS wants to know three things: what your original information stated; what corrections you want to make; and why you need to make an alteration. If you can supply all this information you should not have any problems using this form to amend your original return. You will also find a section on the form that allows you to remove or add exemptions.
What should I do if amending my return will mean more money out of my pocket? Even if you know that the IRS will benefit, you still need to make the amendment. It is better to fix the problem now than to have the IRS catch you. In that case you will probably end up paying more in penalties and interest.
Still don't understand how to amend a tax return? Even though the process for doing so is fairly simple, some people just don't know how to get started. You can hire a tax professional to help you amend your return. This may cost, but in the end you know that everything is now accurate. With the information above you should have a better idea of how to amend tax returns. Make sure you do this if you made a mistake, regardless of the size.