Virginia help needed - amended return issue

[FEDUKE404]

Client previously has efiled a 2010 VA return which showed a balance due (let's say $600). A bank debit for that amount is already scheduled for April 11th.

A change to the return has occurred so that an amended 2010 VA return is now necessary. Assuming the "new" information had been included in the original return, a refund (let's say $200) would have occurred.

My software provider has acknowledged that the amended return can also be efiled, and in effect the "same" return is being filed (replacing the original??) with only the "correct" information and the "amended" box checked. The amended return can be efiled within 48 hours.

Will the client now receive only a refund of $200 (no debit occurs - canceled?) or instead receive a refund of $800 and the $600 debit does occur? (Is VA Dept of Taxation sophisticated enough to figure this out? )

I would appreciate any input from a VA preparer who has faced a similar situation, and who may have some suggestions as how to best handle this matter.

Thanks!

FE

[Burke]

Mmmmm.....haven't had this exact situation before, but logic tells me if original return is already in the system, and bank draft is scheduled for 4/11, it's gonna process. I would let it. Then efile the amended after 4/11, directing refund to same bank account. Filing deadline for VA is 5/1/11, not 4/18, so you have a cushion. Had he already paid the amt due and it had cleared, I would say go for it. But not in this case. I think you'll have a problem if you do it now, and there is nothing lost by waiting until 4/12 or later. You check the box at the top for "amended" which should bring up a worksheet to complete. Just make sure that debit has cleared his bank account. Then you will know the system can accept an amended return without complications. Or you can go on their website and check for processing date.

[Possi]

Called my local office

I called my local office and she said that the TP will most likely get the $600 and will need to mail a payment of $200 back before the deadline which is May 1.

She would not have filed that amended return until the original return was completely processed, but too late for that.

If the TP does get the $600, and you need more assistance with where and how to pay, you can email me at dsmtax@cox.net and I'll get the message pretty quick. I'll help you with the details.

[Burke]

Think he owed $600 on original and amended showed $200 refund. At least that is how I read it. And I didn't get the impression he had filed the amended yet? Well, on second reading, maybe he did.

[FEDUKE404]

Clarification

Client owed $600 and debit has been requested via previously efiled return.

"Correct" number with new information is a refund of $200.

Telephone conversation this date with someone (Richmond?) with Va Dept of Taxation confirmed the debit will (must) occur as scheduled, and somewhere down the road the client should receive a check for $800 ($200 refund + $600 paid in error).

Apparently VA is one of a handful of states that allow efiling of amended returns, but only if the software package supports it! The only change in appearance from an "original" return is the amended box is checked. The actual refund shown is the $200 amount. An attached worksheet states something like "tax you overpaid" and the $800 amount is shown there.

I guess time will tell how well this amendment process works......

FE

[Burke]

Have filed many, and usually amendment process works just fine. Not sure how your case will be handled if amended return was efiled before the original one had cleared the books. Be interested in your feedback, however. Let us know.