Amended Return?

[KarenMM]

Hi Folks -
I have a client who realized he made an addition error (in the IRS' favor) when reporting his medical expenses to me for his 2014 return. After running the amended return through my system, I realized this will not change his tax outcome at all. He had a tiny taxable income before, and the taxable income now is still small enough to require no taxes to be paid. Should I send this in to the IRS anyway?
Thanks for your opinions

[Dusty2004]

No

No - no change in tax should not be amended.

Dusty

[Roland Slugg]

An amended return may be filed to add, delete or change anything not reported or reported incorrectly on the original return. This is true even if the change does not change the tax. For example, if an original return showed an overall loss, thus creating an NOL, and subsequently the T/P determines that something in the O.R. was incorrect ... such as the loss from a business, a PAL, etc., an amended return should be filed to report those changes. There are many reasons this can happen, and they usually have to do with carryovers or carrybacks.

In a case like the one you described, however, I would advise the client not to file an amended return, because nothing changes. I would simply make a note about the correction for his file and consider using it if additional changes are discovered or if his return is audited by the IRS.

[taxea]

I totally agree with Roland. This is just an addition error that amounts to nothing. If IRS finds the error, reruns the numbers and discovers it doesn't change anything they probably won't even send a letter.

[ATSMAN]

1040X not necessary

In Badaracco Sr. v. Commissioner, 464 U.S. 386 (1984), the U.S. Supreme Court said that a taxpayer is under no legal obligation or duty to file an amended return even after an error or omission is discovered.

This case there is no change in tax liability.

[FEDUKE404]

Assume original tax return WAS mathematically correct?

I totally agree with Roland. This is just an addition error that amounts to nothing. If IRS finds the error, reruns the numbers and discovers it doesn't change anything they probably won't even send a letter.

It's awfully hard to get an "addition error" past commercial tax software products, unless you are an exuberant user of the override function.

From the OP, it appears the error was from the client who provided an incorrect number to the tax professional, who duly entered that (incorrect) number on the tax return.

I agree with majority: Regardless of the nature of the error, this return is pretty much a non-issue for amending. Keep some notes, and perhaps a "should be" Schedule A in the client file, and move on.

FE

[cskepler]

Amend return to change bonus depreciation

Can you amend a return and change 50% bonus depreciation to regular depreciation?