Amended Tax Returns, AccountantBookkeeper in Cottonwood Heights , UT
Should you file an amended tax return?
Whether you already filed your yearly tax returns on time or perhaps after the tax deadline-- there is still a chance that you might receive information that was not included or you discover something that was missed such as a signifigant deduction. In this case, you may consider filing an amended tax return.
Do I have to file an amended return if I discover an error or receive new information?
There is no actual requirement to file an amended return and no penalty if you don't, even if you discover an error or deductions were not counted properly (such as state taxes, mortgage interest, or a sizable charity contributions). Filing is not required even if new information comes to light (such as receiving a revised 1099 or K-1)-- although in the latter case, the IRS recommends you do amend. Worthless securities and bad debts also may merit an amendment -- and taxpayers have up to seven years to go back and claim those losses.
Is it worth the time and costs to amend my return?
Determining if amending your return(s) is actually worth your time and money vs the reward it can potentially return is something a tax professional such as Paramount Tax & Accounting - Cottonwood Heights can help you best understand. Our amended tax return specialists in Cottonwood Heights can investigate returns as far back as 3 years to find any errors or missed deductions. We can then calculate if you can expect just a meager increase in your refund or if the increase in your refund is potentially larger. By estimating how much your increase will be ahead of filing the amended return, you can decide if the investment in time and money is worth the increase!
What to consider if you amend your return(s)
Consider that if you decide to amend, you can't just correct the items that will give you a refund and neglect those that increase your tax liability. An amended return is more likely to be audited than an original return in general, and every tax return is filed under penalty of perjury, so amending just partial pieces and parts of a tax return could get you into serious trouble. This is why you should always trust a tax advisor to prepare and file your amendments.
If your amended return results in asking for considerable money back, the IRS may review it even more carefully, although you can always choose to apply all or part of the expected refund to your current year's tax instead of asking for cash back.
It's worth noting that amended returns are only filed on paper via Form 1040X even if you filed your original return electronically and whether you previously filed Form 1040, 1040A, or 1040EZ. If you are amending more than one tax return (i.e. for different years), you will need to prepare a separate 1040X for each return.
Timing an Amended Tax Return
Timing counts when it comes to amending a tax return, and there is a select timeframe available. It's commonly stated that you must amend within three years of your original return filing. However, the cutoff is actually three years from the date you filed your original return or two years from the date you paid the tax for the return you wish to amend, whichever is later.
The IRS typically has three years to audit a tax return. Even if you file an amended return, the three-year statute of limitations does not get extended. The amount of time left on the three-year window when you amend can be used to your advantage to assuage the worry of an audit. However, if it shows that you owe more, you will owe additional interest calculated from the due date of the original return (without regard to extensions) and probably penalties as well.
Possible Reasons NOT to Amend
It's important to first ask yourself whether the tax return you filed was accurate to the best of your knowledge when you filed it. If so, it's an okay bet to decide not to file an amended return.
If you simply discover a math error in your calculations, the IRS says there is no need to file an amended return. Their computers or paper-file reviewers will catch the error and correct any amount owed or due to you.
If you forgot to attach certain paperwork to your return, such as a W-2, 1099, or schedules to show your work for different areas of the return, the IRS will likely be able to process your return without it or will send you a letter requesting the missing information.
Timing, accuracy, and necessity are key factors when it comes to amending a tax return. If you need assistance deciding whether or not to file an amended return, or if you would like help filling out Form 1040X to ensure that it is complete and error free, a Paramount tax advisor in Cottonwood Heights can assist you from start to finish.
about 6 years ago I was facing some serious IRS issues. I had called all around no one helped me, I had left a message with Josh Pyne. He called me back on his lunch break and walked me through everything I needed to do. He literally set me on the right path to rectify all my issues. Here we are 6 years later and I wou...
Josh is AMAZING. I highly recommend Paramount Tax & Accounting for your Bookkeeping AND Taxes. I am always pleased with his/their services. Thank you Josh!
— Christina Thomas,
Posted November 19th 2021 on google
I saw Roy today 9/27/2021. Had not seen a good tax accountant since I last saw Roy at his previous location. So Roy has to do a few amended returns and 2020 return for me.
Roy is trustworthy, understood my needs and concerns. So glad I found him once more.
— Theresa G. Falzone,
Posted September 27th 2021 on google
I'm starting a small business and Josh Pyne was able to provide thorough answers to all of my questions. I really look forward to working with them in the future as my business grows!
— Kirsten Tinko Rogers,
Posted September 16th 2021 on google
I met with Josh Pyne over Zoom to get some tax advice. I look forward to implementing his tax strategies.
— Trisha Weaver,
Posted August 31st 2021 on google
Maggie was amazing!! She was so kind and helpful and helped fix all of our problems. I am switching to paramount tax and accounting from now on and will be asking Maggie for help again in the future.
Roy gave me great advice on a financial issue I was having. I feel so relieved after speaking to him. He was very attentive and helpful in my situation.
Very knowledgeable, helpful and easy to talk to. Looking forward to working with them for all our tax needs!
— Tawnya Prince,
Posted August 24th 2021 on google
As you can imagine, it is very nerve wracking to have to deal with the IRS and with Paramount Tax & Accounting that anxiety completely goes away. They have been great to work with, very helpful and extremely competent. I feel lucky to have found them.
Josh and Chris at Paramount Tax are awesome. They’re responsive and quick to respond. I really am glad that I switched over to using them rather than staying with turbo tax. They’ve supported me as my business has evolved and growed. 😊
— Alex Lozano,
Posted December 10th 2020 on google
This place was amazing. I have been doing my taxes with turbo tax for the last few years. My situation changed this year and turbo tax said I was going to owe around 6000 dollars. I took it to these guys and they ended up getting me a refund of over 4000 dollars!!
— Stewart Russell,
Posted April 14th 2021 on google
Josh was extremely helpful answering all our questions and taking care of doubts we might have had about our taxes.
— David Escalante,
Posted April 12th 2021 on google
They are the best here. Amazing detail and make things easy to understand!
Very good service and super fast. Definitely going back next year!! It made my life easier and more relaxing!!
— Efthymia Symeonidi,
Posted March 18th 2021 on google
This was my first year as an independent contractor and I felt overwhelmed on what to do and where to start. Josh explained everything I had questions about and got me a better return than expected. Thanks again, - Arianna D.
Josh is so helpful with taxes. I felt incredibly overwhelmed with my business taxes as I was new to filing them. He guided me through everything I needed to bring to him and made the process much easier on me. I highly recommend Josh.
Many people do not know how a professional tax firm differs from a tax preparer. The main difference when working with a professional tax and accountingbookkeeping firm, such as Paramount Tax & Accounting - Cottonwood Heights, is that our firm utilizes the services of CPAs, EAs, and Attorneys who are distinguished from other finance professionals by stringent qualification and licensing requirements.
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Whether you are filing personal taxes or you own a business, if you are not already using a professional tax and accountingbookkeeping firm, you have most likely already missed out on major tax benefits, deductions and credits. This is because a professional tax and accountingbookkeeping firm utilizes licensed professionals such as CPAs, EAs and Attorneys, who can not only advise individuals on personal financial matters but who are qualified to advise businesses, financial institutions, nonprofit organizations and government agencies on a wide range of financial topics.
Our strict standards ensure that we understand the complicated tax laws and how to implement strategies that return the most benefits to individuals and businesses. Give Paramount Tax & Accounting - Cottonwood Heights a call or visit our
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