How to correct error on Michigan amended return

[Peter Gibbons]

Need some quick advice, please.

I used Turbotax and e-filed my Federal Return and snail mailed my state return at the same time.

My federal return was rejected and I subsequently made some changes and re-filed it.

Therefore, I filed an amended state return to account for the changes I made to the Federal return.  However, I have now received a notice from the Michigan Department of Treasury that I made an error when I filed my amended state return.  The error was "Your amended or second return did not take into consideration the refund you received on your original return".

Question:  What's the best way to correct the error ?  Can I re-file another amended state return with the error corrected ?

[MDM]

Can I re-file another amended state return with the error corrected ?

That seems the best approach, unless the letter from the state specified something else.

[reeshau]

Did you file a form AMD with your amended return?   And did you tell TurboTax you were amending your return, or did you just update the numbers?  I would have to Believe TT would follow through with the right calculations for amendment, but you have to declare it so, so it doesn't just think you made a change to the numbers.  (i.e. pre-filing)

[Peter Gibbons]

Did you file a form AMD with your amended return?   And did you tell TurboTax you were amending your return, or did you just update the numbers?  I would have to Believe TT would follow through with the right calculations for amendment, but you have to declare it so, so it doesn't just think you made a change to the numbers.  (i.e. pre-filing)

Thanks for the reply....
As you rightly suspected, on the amended return I filed previously,  I did not tell TurboTax I was amending the return and instead I attempted to do it manually (that's how I made the error); I manually filled out a schedule AMD.

Today I went back into TurboTax and did tell it I was amending the return and TurboTax did create the Schedule AMD and correctly generated all the forms.  But the reason for my question is that now my "second amended filing" is referring back to the original filing rather than the "first amended filing" that was disallowed. 

So my question is at this point is should I file this second amended filing or would it be better to appeal the ruling of disallowing of the first amendment.

[MDM]

So my question is at this point is should I file this second amended filing or would it be better to appeal the ruling of disallowing of the first amendment.

Given that most state tax departments - and Michigan is probably not an exception - aren't being very productive these days, I'd probably file the new amended return.  But then I don't know all the details, so...?

[reeshau]

If you want to be certain, call them or ask a CPA or registered agent.  But since your first amendment was rejected, I think calculating from your original is the correct thing to do.  If you have some free text in the "reason for amendment" box, mention your prior amendment was rejected for the issue with the refund, and this corrects that mistake.  (In additon to whatever the original problem was with the federal return)

[Peter Gibbons]

So my question is at this point is should I file this second amended filing or would it be better to appeal the ruling of disallowing of the first amendment.

Given that most state tax departments - and Michigan is probably not an exception - aren't being very productive these days, I'd probably file the new amended return.  But then I don't know all the details, so...?

Thank you, MDM!  I decided to do as you suggested.

[Peter Gibbons]

If you want to be certain, call them or ask a CPA or registered agent.  But since your first amendment was rejected, I think calculating from your original is the correct thing to do.  If you have some free text in the "reason for amendment" box, mention your prior amendment was rejected for the issue with the refund, and this corrects that mistake.  (In additon to whatever the original problem was with the federal return)

Thank you, reeeshau!  Michigan treasury is not taking calls currently to answer questions due to Covid-19 (that's why I turned to MMM Forum for advice).
I decided to file the ammended return and added the free text explanation as you suggested.