File Jan 11 - Amend Feb 11

[Larmil]

We will be under pressure to file some return early (such as those with education credits) and later file an amendment. I, for one, have a problem with that.

Apparently Tim Gokey, group president of H&R Block Tax Services does not. The following is a quote from Thursday in Fox Business:

"Taxpayers can also file their return earlier by not claiming the credits being blocked until Feb. 11, and then filing an amended return later to claim the additional credits. In this way, taxpayers will receive most of their refund on time, and then get the remainder of their refund as soon as possible."

[BOB W]

H&R is in bed with the IRS, they can do anything they want.........................

[newbie]

I'm sure they like this as they can charge more for the amendment!

[Larmil]

Imho

I'm sure they like this as they can charge more for the amendment!

It is still not right!

[newbie]

It is still not right!

I don't think it is right at all!!

[fliszt]

Isn't that

against IRS regs?

[JohnH]

Not sure I understand

I can't say that I understand what's not right about the HRB rep giving out this info (provided it's legal). I'm no defender of HRB, but they have an obligation (as do we) to advise their clients of all their options.

I've had situations in the past where I advised the client to wait, but told them if they are bound & determined to file NOW, then it might be necessary to amend later and there would be a charge for doing so. This usually involves brokerage statements from firms that were notorious for sending out revised statements in mid-to-late Feb.

This situation is different in that Congress and the Administration caused the problem, but from our standpoint the issue is just the same; does the client want to file now, knowing they will need to pay for an amended return later, or do they want to wait until everything is in place? Give them good information & let them make the decision.

[Larmil]

The 1040 jurat says:

I can't say that I understand what's not right about the HRB rep giving out this info (provided it's legal). I'm no defender of HRB, but they have an obligation (as do we) to advise their clients of all their options.

I've had situations in the past where I advised the client to wait, but told them if they are bound & determined to file NOW, then it might be necessary to amend later and there would be a charge for doing so. This usually involves brokerage statements from firms that were notorious for sending out revised statements in mid-to-late Feb.

This situation is different in that Congress and the Administration caused the problem, but from our standpoint the issue is just the same; does the client want to file now, knowing they will need to pay for an amended return later, or do they want to wait until everything is in place? Give them good information & let them make the decision.

"Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge."

So the client is saying that the return is complete the the best of his/her knowledge when
he/she KNOWS that is not correct. The same goes for the preparer if the preparer is aware of the unclaimed credit. In the case of amended broker statements the client has no way of knowing.

[JohnH]

I see your point

Not really arguing with you about this, but it's an interesting discussion. Are taxpayers required to claim credits to which they may be entitled, or is it a choice?

[Larmil]

I'm Not Sure

Not really arguing with you about this, but it's an interesting discussion. Are taxpayers required to claim credits to which they may be entitled, or is it a choice?

of the answer to your question. I wish I knew. It is interesting that the jurat on the 1040A and 1040EZ is different. It reads:

"Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and accurately list all amounts and sources of income I received during the tax year. Declaration of preparer (other than the taxpayer) is based on all information of which the preparer has any knowledge."

Compare that to the jurat on the 1040 which is:

"Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge."

The addition of the word 'complete' is what puzzles me. It is as if covering more than 'all amounts and sources of income'..

[JohnH]

Wording

Matt:

I wouldn't suggest entering a lie as the reason on the amended return.

What would be wrong with stating:

"At the time the original return was filed, we did not claim the ____ credit"

[taxea]

File Jan 11 - Amend Feb 11

This could be the reason for the new prepare penalty...filing a return while having knowledge that it is not correct. My practice has always been to put incomplete returns on hold.
Also, according to the IRS
If you file a return and it needs correction prior to 4/15 you do not prepare an amended return, Instead, you file a 1040 and write "Corrected Return" across the top of the first page.

I do agree that HRB probably does file the return because they know that can charge an additional fee to prepare an amended return. Which, in my opinion, they should not charge an addition fee because it was as much their error to file the first return. taxea

[joanmcq]

Maybe its because with the A and EZ not having lines for things like Sch C or Sch D, its not the same as having a line with nothing on it. Nothing on the line supposes the amount to be zero, so by signing the 1040 you are attesting that you don't have any of these kinds of income.

[S T]

File 1-11 and Amend on 2-11

I. for one, will not be filing on 1-11 and secondly would not like to be preparing amended returns on 2-11, particularly if I could not charge for them. For my practice it is not uncommon not to file first returns until around the 1st week in February, but then I don't have a "walk-in" W-2 only practice.

It is just too much work to file an incomplete return and then file an amended return !

Some clients will just have to wait to file their tax returns this year, and hopefully I can explain to them. Besides won't it take longer to process their refunds if they file on 1-11, won't the IRS be looking at these returns thinking that they are either incomplete or inaccurate??

Sandy

[ecb34691]

Refund cycle hasn't changed and IRS won't be accepting any returns with the 5 mentioned forms and most likely your software won't allow you to file with them anyways. Hand prepared paper returns may be different, besides their normal process is delayed anyways. Why do you think the early returns would be inaccurate or under any more checking than normal?