Help! Error on Efiled Tax Return ..in my favour

[jennjenn80]

Hello,

I just had a quick question - I just efiled my 2007 tax return last night and was looking over the printed copy this morning. I noticed that I entered a higher amount of federal taxes that I actually paid because of one numerical error..the amount is quite high - about 1000 more - how do I adjust this??

I have arranged for direct deposit so what do I do if I receive my refund before I am able to adjust this? Will the Revenue Dept. notice this when they do the assessment? Will there be penalties.

It was a genuine error but I am scared of getting in trouble with the tax dept..any advice???

[Gretel]

If the IRS doesn't catch this right away you will be getting a letter later on asking for this money back. If the payment is made after 4/15. they also will access penalty and interest.

[jennjenn80]

If the IRS doesn't catch this right away you will be getting a letter later on asking for this money back. If the payment is made after 4/15. they also will access penalty and interest.

Ok, so what would prevent them from catching this right away as opposed to later? wouldn't this be done in the intial assessment?..Also, what kind of penalties?

Thx again.

[FEDUKE404]

Don't spent the $$$

Ok, so what would prevent them from catching this right away as opposed to later? wouldn't this be done in the intial assessment?..Also, what kind of penalties?

I'm not sure the IRS "initial assessment" addresses much more than math issues, SSN verification, and the like. Your refund may significantly exceed what is in your "W2 bank" so that might also set something off. There may be some threshold of error like yours that flags an e-filed return, but I doubt it. Perhaps someone with IRS connections might know the answer.

Otherwise, they will eventually match information from certain documents. I would prepare a 1040X and at least have it in the wings ready to go prior to 4/15, especially if you see that refund in your bank account (next Friday?).

FE

[joanmcq]

Do the X right away. The IRS won't catch a withholding mistake for at least 11 months; the only ones they get right away are estimated and extension payments that are over or understated. The IRS doesn't have withholding info yet. If you pay back before April 15th, there won't be a penalty or interest.

[Brian EA]

Do the X right away. The IRS won't catch a withholding mistake for at least 11 months; the only ones they get right away are estimated and extension payments that are over or understated. The IRS doesn't have withholding info yet. If you pay back before April 15th, there won't be a penalty or interest.

Wait until you receive the refund then file the amended and sent the balance owed.
You have nothing to worry

brian

[ED SMITH]

Amended returns - 1040X - are filed After 4-15. Before that date a Corrected return should be filed.

[ChEAr$]

Who told you that?

Amended returns - 1040X - are filed After 4-15. Before that date a Corrected return should be filed.

eh? (more characters here to make it long enough.)

[S T]

1040x

There seems to be some conflict between "corrected returns", which I have never heard of and a 1040X. I thought that was what the 1040X was for to correct the original filed return due to additional information receive, or incorrect information submitted on the original return.

I was always under the impression, that if the original filing was incorrect, then a 1040X had to be prepared and filed, and I have never been aware of not filing prior to 4/15. I have done several, and have never had an issue with it.

Sandy

[ecb34691]

Been doing 1040X's for years as soon as an error is noted and NEVER any problem. Many early filers walk in a week later with additional w-2's, and guess what - sometimes they get more back and sometimes they have to pay back some of the refund they just got. Just love it - these people don't have a clue how many people they worked for during the year or if their company changed payroll companies, etc. This year the AMT delay caused a nationwide flood of 1040X's and now we have the stimulus package paper influx.

[Bonnie]

Amended returns - 1040X - are filed After 4-15. Before that date a Corrected return should be filed. (Quote)

I have already done a 1040X for this year and the taxpayer mailed it in. Been doing them for years. Many RAL customers in prior years filed knowing they didn't have all W-2's and would come back a few days later and we'd do the 1040X. They were just in a big hurry for that big check. A 1040X is a corrected return. I never heard of writing corrected on the top of a return until it came up in this forum. Been doing 1040's for years as soon as the mistake is found.

Bonnie

[David1980]

Noone has yet been able to give a source for the "corrected" 1040 pre 4/15.

All documents that cover correcting a return specify to use 1040X. Tax topic 308 even says if you have additional taxes owed to file a 1040X and send in the amount by 4/15. If it's *incorrect* to file a 1040X before 4/15 the IRS document is also incorrect.

http://www.irs.gov/taxtopics/tc308.html

"if you owe additional tax for a current year amended return, file Form 1040X and pay the tax by April 15 of the current year."

That isn't to say if you do file a 1040 with "corrected" on top it'll get refused or anything. (Then again if you file a return with refund where you don't add numbers correctly IRS also corrects this, but it wouldn't be proper to say you're not required to add numbers correctly.)

[Brian EA]

Corrected return

This happened in the early 90"s. My clients who were both real estate agents filed 2 sch C's. Apparently their income did not match the 1099's Uncle sam received. They were asked to correct the return . They were told specifically not to amend the return and they were to write on the front of the 1040"CORRECTED RETURN".
That is exactly what I did. They had to pay a few more dollars in taxes and that was the end of it.

There is no ruling that says you have to amend a return after april 15th. If you do that then you are in for penalities and interest. Maybe no penalities but definitely interest.

brian