I received a corrected 1099 for dividends. I prepared my amended state and federal returns. I owe $11 for Federal and $2 for state. As I understand it, I need to file these and send a check. It seems to me there should be some kind of threshold. Obviously it is going to cost the state more than $2 to process the amended return and cash the check (knowing the efficeiency of the government, my guess is it costs at least $50 per return to process.).
I have several questions for you and the group -
1 - do you charge for amended returns if they are required as no fault of yours? 2 - assuming you do, how do you calculate your fee for such an amendment? 3 - when do you prepare amended returns, during tax season or do you wait? For my office - 1 - yes we charge.2 - we calculate the fee the same way we would for an original return. Any change can impact various items like credits, phase outs and such. So our "quoted" fee for an amended return is the same as for an original return. Depending on the facts and circumstances we may discount the fee though.
3 - Amended returns that are NOT OUR FAULT are done after May 1.Of course, if there is an error that is our fault we amend the returns immediately without charge. Just curious, Gene E. Utterback, EA, RFC
Michael, your statements are ALL woefully incorrect. It is under the IRS tolerance amount and the chance the IRS would do anything is ZERO. Period. You've been told so by every single tax professional here representing hundreds of years of experience with the IRS and representing taxpayers. But that isn't what you wanted to hear. You wanted to make a statement and you did so. Congrats. I hope you feel better.
Today I amended the federal, Georgia and Alabama returns for a client. Took me all of 25 minutes and charged him 75$ for my time. But why did I have to amend? Because, on his business income /expense worksheet for 2002, he included in gross income, all of his business income plus his W2 income. So this amendment reports about 30,000$ less schedule c income, negates the original schedule se and also affects the medical deduction on schedule a. What I'm wondering now, will IRS just process it routinely, or might they notice the requested refund of 7,500$ and say "Whoa now! wait a MINUTE?" time will tell.
Sure, I have had plenty of amendments over the years, but none exactly like this one. ChEAr$, Harlan Lunsford, EA n LA
Just under the wire for statute!?
Being as it is this close, it will be scrutinized, full IRP doc review (again)! The clients error might have been reviewed the automated under reporter system. The TE may have screened & closed this issue a couple of years ago, closing it as missing wage entry found as exact differential match on Schedule C gross receipts. The reason it was closed is that correction of the ~apparent ~ error would have resulted in the refund you computed. Just another reason some folks should not attempt to do even a simple Schedule C
Hmmm, added information.
originally he included his W2 income in the schedule c worksheet as I mentioned above. I didn't know that of course, so his W2 was processed normally on line 7. Which means double income reported Originally. So the 1040x subtracts the W2 income from sch c, leaving only maybe 6000$ gross, and thus generating large refund on the 30,000$ of W2 income plus the SE tax originally paid. So I can't blame them if they do scrutinize it carefully. Keeping my fingers crossed. ChEAr$, Harlan
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