File Jan 11 - Amend Feb 11

[SunTaxMan]

Original with "note?"

Could we include a "disclosure" that an amended return is anticipated that will include _____ - whether that disclosure is on a "Disclosure Statement" or in the margin of the return (as ATX allows us)?

Can a taxpayer file a return and NOT claim a credit to which he/she is entitled. EIC issues come to mind real quick!

[S T]

Not saying that

ECB,

Not saying early returns will be under any more scrutiny, it was a question!

Maybe this particular year some tax preparers (posters of this board not included) are under pressure to file on 1/11 or thereabouts, rather than wait a few days or weeks and not advise their clients that not all forms have been approved for filing by 1/11.

Prepare the tax return, collect the money, and then advise the client, of later filing date.

Sandy

[Golden Rocket]

Full Disclosure

I might be confronted with this, but I don't have much of an early crowd. If so, I might make the client fully aware.

Assume client will have a $1500 refund aside from education credits, and another $750 which can be claimed on an amended return. The double-dip process should be fully disclosed. Yes, we can get the $1500 back. Wait three weeks and you get $2250.

The amended return option goes like this: $1500 comes back, then they PAY double to have the amended return filed. The $750 does not come back in three weeks.

Three months is closer to the truth. I haven't seen any consistency or urgency from the IRS on processing amended returns. My experience reflects a wide range, as early as 30 days, as late as 6-8 months, and longer if the amendment is questioned. I would say the average might be 75 to 90 days.

To me, the choice is clear-cut -- "do thy patient no harm." But what will customers want?
We know most of them want RALs, so why would they not want the amended return treatment?

[Bees Knees]

Penalties always apply to the underpayment of tax. There is no penalty for overpaying your tax.

The only exception is when you purposely fail to claim a deduction in order to increase your EIC. In that case, you are still applying the “failure” to underpay your tax, due to EIC fraud.

Therefore, H&R Block is not breaking any rules advising clients to file early, get part of their refund, and then amend later to get the rest.

As to charging extra to do it this way, that’s another matter. That’s a business practice H&R block has apparently decided to make. To me, it is no different than charging an extra fee to do a RAL. Both are business practices designed to make extra money offering a service to people who have little skill or knowledge in financial matters.

[Lion]

Amendments

HRB does NOT charge to prepare amendments for the current year for returns they prepared. They DO charge for any new forms (other than the 1040X) that were not on the original return.