Amendment Tax Returns : Non-Residents (Students who are in the USA on F1) or Resident aliens or Citizens can go for Amendment tax returns. Amendment of any filed tax returns or last three years filed tax returns will help taxpayers to get their lost credits, deductions, exemptions on their tax returns which can help them to get their lost hard earned money back.
Amendment of tax returns can even help taxpayers to avoid any expensive notices from IRS, which may demand taxpayers to pay back the refund amount, with interest and penalties etc.
Why Would a Taxpayer Need a Amendment Tax Return?
If the taxpayer is not a tax professional it is very much difficult to understand the US tax laws, because there are lot many publications with numerous pages will confuse you, in turn, you will not be able to understand your tax situation.
There are various reasons to go for amending tax returns; some of them are below related to individual tax returns.
1. Filing right tax returns
2. Filing correct filing status
3. Claiming additional dependents
4. Changing the filing status
5. Claiming Non-refundable Credits
6. Carry back claim
We have noticed that the taxpayers are searching for the information about Amended Return on internet, but not able to get the relevant and complete information, in fact most of the tax experts are keeping themselves in doing business tax returns and not always helpful to the people who are eagerly looking for the aid of the information on amending their tax returns.
Taxpayers generally file Amended returns for additional refunds or correcting the tax returns, which can help them to avoid any notices from IRS. As IRS regularly checks the filed tax returns of taxpayers as part of their regular checks with the help of sophisticated software’s, which ensures that no one is filing inaccurate or incorrect tax returns. IRS and State Income Tax Departments may send various types of notices on the filed tax returns. Even sometimes the taxpayer may receive a notice mistakenly by the IRS for more information about the taxpayer unless the additional information is provided the IRS will not issue refund amount.
IRS claims that it can check anyone’s filed tax return up to 6-7 years, at the same time it also says if any taxpayer has missed any of his or her tax benefits like Exemptions, Deductions or Credits can claim them by filing Amended tax returns (explaining the changes).
Some of the IRS penalties below:
The penalty on non-filing tax returns before the due date
The penalty for not paying taxes on time
The penalty for not disclosing foreign income
The Penalty on tax frauds
The penalty for not showing various types of income
Huge penalties for claiming ineligible Credits, Deductions, Exemptions
Amendment Tax Returns Penalties & Interest :
IRS will demand interest on taxes not paid by the due date (tax filing deadline) though you had an extension time to file. The IRS will also charge interest on penalties for failure to file, negligence, fraud, substantial valuation misstatements, substantial understatements of tax, and reportable transaction understatements. Interest is added to the penalty from the due date of the tax return (including extensions).
The penalty for Erroneous Claim for Credit or Refund : If you have claimed the Credits or Refunds more than a permissible amount, you will have to pay a penalty of 20% of the disallowed amount.
The penalty for Late Payment of Taxes : You are obliged to pay additional tax due on your amended tax returns form 1040X before 21 days of time from the date mentioned on the IRS notice (10 business days from that date if the amount of tax is $100,000 or more), the penalty is usually ½ of 1% of the unpaid amount for each month or part of a month tax isn’t paid. You are entitled to pay maximum 25% of the unpaid due amount on tax returns. This penalty is in addition to interest charges on late payments. You won’t have to pay the penalty if you can show a reasonable cause for not paying your taxes on time.
The penalty for Frivolous Tax Return : The IRS imposes a penalty of $5,000 for filing a frivolous return. A tax return becomes Frivolous when the tax returns do not have enough information or are not complied with the IRS Laws and Publications, it means you are taking undue advantage to claim the deductions, credits or exemptions.
When to File Form 1040X?
You must file Form 1040X within 3 years (including extensions) after the date you filed your original tax return or within 2 years after the date you paid the tax, whichever is later. There is no exact timeline for filing tax returns form 1040X for the physically or mentally challenged people since they will not be able to do things by themselves.
Where is My Amended Tax Return?
Amendment tax returns are always paper filing and your Amended tax return form is 1040X, once you mail form 1040X with the required documents to the IRS the minimum processing time is 16 weeks.
- You can check the status of your amended tax return on IRS after 3 weeks of mailing your tax returns to IRS.
- You need to mention your Social Security Number, Date of birth Zip code to know your Amended tax return status.
- You can get your Tax Amendment, Amendment tax return status only for the current year.
We Crescent Tax Filing can help the client in Amending their tax returns:
- Non-Resident Aliens who are on F1-CPT/OPT, M, J, Q Visa Holders.
- Resident-Aliens H1, L1, TN Visa Holders.
- GC EAD, GC, and Citizens.
Clients can sign up on our website or can call us on 916-241-4499 all over the year for Free Consulting; there are many Quality Value Added Tax Services without any Cost, with support from our tax experts all year round.
Kindly go through more information and details on our website or feel free to call us today.