When a mistake is made in a tax return handed in to the IRS, it is possible to hand in a fixed tax return using a form called X-1040 “Amended Return”. In the following guide we will explain in which cases there is a justification to hand it an amendment and the accompanying repercussions.
What is a X-1040 for and what is it intended for?
The X-1040 form is a document handed in to the IRS for the amendment of a personal tax return from the 1040 series that has already been handed in. in the form the tax – payer can document the correct and exact amounts as they were supposed to be reported on the original tax return as well as the differences compared to the report given to the IRS in the previous return.
Is there a need to hand in an X-1040 form for every calculation mistake in the tax return to the IRS?
In cases where a wrong tax return is handed in to the IRS, it is possible to hand in an amendment to the tax return using a designated form called X-1040. In regards to a simple calculation mistake, this isn’t necessary, as the IRS usually does those amendments themselves.
When this happens the taxpayer receives a letter describing the mistake made on the return, along with the recalculation done by the IRS with the option to appeal the amendment.
Which cases do have a justification for an X-1040 form?
Below are the cases where there is justification to hand in an amended return using an X-1040 form:
- When there is a need to update the filing status of the tax – payer.
- When the has been a change in the income reported.
- When deductions and or credit amount have been omitted.
- When the number of dependents requires amending.
- When a tax – payer is required to hand in an 8938 FATCA form to report on foreign financial properties whose scale surpasses the bar that required declaring and has yet to hand it in. (In these cases, there is great importance to be precise in the tax returns to the IRS).
What’s the connection between an X-1040 form to tax returns in the United States?
An X-1040 form can be used to request tax refunds for the reported tax year, in cases where that wasn’t included in the original tax return that was handed in, as well as report on losses between the years that were not reported in the original return.
In order to request a tax refund, you’ll need to hand in the amended tax return using the X-1040 form within a time period not exceeding 3 years from the date of the original tax return being handed in, or within no more than 2 years from the date the tax you want refunded was paid – the later between them.
It should be noted that in term of the statute of limitations on tax refunds in the United States, returns handed in before the last submission date will be treated as returns submitted at the last submission date for that tax year.
Who can submit an X-1040 form?
Any person can submit the form if they have already handed in a tax return to the IRS in the United States and needs to amend it for any one of these reasons:
- A substantial report error in a 1040 form, an SR-1040 form, or NR-1040 form – most tax – payers in the United States used one of these 3 forms when submitting their yearly tax returns.
- A need to change the manner of reporting – for example, a married tax – payer can choose to submit the yearly tax return to the IRS as single or with a spouse.
- A need to change an amount that was previously changed by the IRS.
- A need to request tax returns because of deductions or losses that were not used.
Which reports can be amended by an X-1040 form?
An amendment can be submitted by using the X-1040 form for tax returns of the following type:
- 1040
- 1040-SR
- 1040A
- 1040EZ
- 1040EZ-T
- 1040NR
- 1040NR-EZ
If the changes that require reporting affect more that one tax return, you will need to hand in a separate X-1040 form for each year.
The form format of the X-1040 form
The X-1040 form is made up of 3 columns:
- In column A are the original amounts or the amounts decided by the preliminary IRS check.
- In column B is the difference and the explanation for the amendment request.
- In column C are the correct and amended amounts.
Highlights for submitting the X-1040 form
In the event that the amended tax return reports a tax debt, and the last date for submitting the yearly report hasn’t passed yet, an X-1040 form will be submitted and the tax – payer will pay the tax difference along with the amendment in order to avoid fines and interests.
It’s important to make sure that the amendments reported in the X-1040 form must appear consistently in each of the yearly return’s appendages, so that the return correctly present the income rates of the reported tax year.
With that, there is no need to calculate fines and interests originating from not reporting the exact amount of income to the IRS. In case those are required, you can be rest assured that the IRS will make sure to let you know.
In which cases can submitting an X-1040 form be beneficial?
When you are using the X-1040 form to request tax refunds for deductions or credits that weren’t used or in order to fix a mistake that lowers the sum of taxes you owe for that return year, the X-1040 form can be used as an official request for tax refunds from the IRS.
In addition, many small business owners can use the form to refund themselves for net operational losses that occurred in 1 of the 2 following tax years.
What information is necessary in order to submit the X-1040 form?
The most beneficial document you will be needing while preparing the X-1040 form is a copy of the original tax return in need of amending. This way you can copy some of the original information to the amended tax return, such as:
- Your social security number
- Submission status
- Gross income amount
- And more
In addition, it’s recommended that you have relevant documentation handy connected to the changes you wish to make on your return. For example: references such as proof of payment for a deduction you are requesting a reduction of tax debt for or documentation of another income you need to report on.
Time frame for handing in an amended tax return using the X-1040 form
In order to receive a refund, the tax – payer must submit an X-1040 form within 3 years after submitting the original return or within 2 years after paying the tax, going by the later of the two. The IRS in the United States constricts the time frame for handing in an amended tax return. For most tax – payers this also has to be done within 3 years of submitting the original return or 2 years of paying the tax actively for that year.
With that, if you’ve submitted the original return after the last submission date since you’ve gotten an extension on the date of submission for the report, that means the 3 – year statute of refunds for taxes in the United States will start only from the date when you’ve actively submitted your return.
How can you view the handling status of the tax return amended through the X-1040 form?
After you’ve submitted an amendment to the yearly tax return using the X-1040 form, you can view the handling status of your amended return the IRS website in the area called “Where is My Amended Return”.
How to submit the X-1040 form?
Tax – payers as well as foreign investors in the United States, can submit the X-1040 form through email or by sending it through regular mail to the IRS. But the fastest and easiest way to submit an amended return is by using a company for American tax consulting that uses a professional system to report directly to the IRS, that way the handling of your tax refunds will be done in the fastest way.
For assistance in submitting amended tax returns to the IRS and receiving American tax refunds efficiently and easily, turn to the America Tax team as soon as possible!
