Amended Tax Returns, AccountantBookkeeper in Rancho Cucamonga, CA
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 - Rancho Cucamonga can help you best understand. Our amended tax return specialists in Rancho Cucamonga 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 Rancho Cucamonga can assist you from start to finish.
Love Chris and his entire Team ! They are awesome !!
— Angelica Shimmin,
Posted May 15th 2023 on google
Chris Collins is hands down the best CPA around. Was referred by a family friend over 15 yrs ago and have been going to him ever since for taxes, mortgage, investments and any money/ life advice. Chris has become like family and his entire team at Fusion Financial is amazing .
My wife and I have been with Chris for close to 20 years. He is patient, personable, professional. Will take the time to answer questions. He is now preparing the tax returns for our kids too!
Love coming here and working with the team, especially Chris. He has been working with my family for 15 years and would never go anywhere else. Super helpful and knowledgeable. Always friendly. Will continue coming back.
Chris is the best tax accountant you can go to. Very knowledgeable about everything and answers all questions you have.
— Matthew Velasquez,
Posted May 1st 2023 on google
Chris and team are excellent, thorough, and very professional. Highly recommend for all tax services.
— Andrew Saltsgaver,
Posted May 1st 2023 on google
I had my tax done today with Chris and I was very pleased with the service. He was very professional and very patient. For sure, they offer high quality service.
— Ladan Modallel,
Posted April 29th 2023 on google
Chris and his team is amazing, it is a great comfort knowing that I have a team of people protecting me and my family!
— Mike Howard,
Posted February 10th 2023 on google
They were a great help with my taxes and also gave me some advice Ways to help me with my future planning.
Thank you David
— David Pusczewicz,
Posted April 28th 2023 on google
We love them… still going back after 17 years. They’re honest, dedicated and helpful in anything taxes. Everything else, they can help with that too. Keep up the amazing work. Thank you so much Chris and Mike.
This is my second year working with Chris and the team at paramount to file my taxes. The whole team is great! They treat you like family and are truly there to help. Ill be a customer for life from now on.
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 - Rancho Cucamonga, 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 - Rancho Cucamonga a call or visit our
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