Author Topic: Filing amended return - was due refund now owe  (Read 599 times)

PowderStache

  • 5 O'Clock Shadow
  • *
  • Posts: 10
Filing amended return - was due refund now owe
« on: April 15, 2019, 01:58:47 PM »
Asking for a friend:
Filed a return last week electronically that had a $100 refund coming.
Realized some income was left off, now owes $50.

When should he file 1040X?  Now to beat the tax deadline, or after the IRS processes the first return?

If now, what size check should he send?  The $50 that he owes, or $150 to repay the refund (that hasn't arrived yet) plus what he owes now?

dcheesi

  • Pencil Stache
  • ****
  • Posts: 866
Re: Filing amended return - was due refund now owe
« Reply #1 on: April 15, 2019, 03:50:44 PM »
I think generally with a 1040X you send the difference between the original amount and the new. No idea how the timing affects that, unfortunately. I've read/heard that amended returns are handled by a completely separate group, so there's a lot of room for confusion and lack of coordination there.


SeattleCPA

  • Handlebar Stache
  • *****
  • Posts: 1442
  • Age: 59
  • Location: Redmond, WA
    • Evergreen Small Business
Re: Filing amended return - was due refund now owe
« Reply #2 on: April 15, 2019, 04:05:51 PM »
To keep things easy, I'd probably just wait to hear from IRS.

When you hear, they will bill you for the $150.

They may also ding you with small-ish penalty (sort of an 8%-ish interest rate)... or the big 25% penalty. Either way, the penalty won't be THAT big. And you'll let them (the IRS) handle the accounting and the amending.

secondcor521

  • Handlebar Stache
  • *****
  • Posts: 2354
  • Age: 50
  • Location: Boise, Idaho
  • Big cattle, no hat.
    • Age of Eon - Overwatch player videos
Re: Filing amended return - was due refund now owe
« Reply #3 on: April 15, 2019, 10:05:41 PM »
Has your friend read these?

https://www.irs.gov/faqs/irs-procedures/amended-returns-form-1040x/amended-returns-form-1040x

https://www.irs.gov/pub/irs-pdf/i1040x.pdf

When to file is on page 3 of the second link.

How big of a check to send is probably covered in the instructions for line 20 of the Form 1040X, which is on page 15 of the second link.
« Last Edit: April 15, 2019, 10:09:19 PM by secondcor521 »