The IRS bounced back my return with three errors on it. There was a typo in the SSN of a dependent, tax withheld was posted on the line below (estimated tax paid), and Schedule D was neglected which, if included (with its loss), will result in a $75 saving to me.
In order to fix these issues, do I need to send an 1040X or can they be corrected with a simple letter?
Thanks, G
File a 1040X. You have to do most of the work to find the correct tax anyway, so generating a 1040X should be routine.
You obviously did not e-file, or the Name/SSN Mismatch would have been caught immediately.
Grip, when you say the IRS "bounced the return back" to you, do you mean they sent the complete original tax return back to you? Seems to me if they sent it back, they didn't keep it, and if they didn't keep it, it doesn't count, and they might now be expecting you to submit an "original" return. I'm sure there was correspondence; what did it say for you to do? These folks have been doing this a long long time, and more often than not their letters are simple and direct (although they are known for their cumbersomeness). I'm curious about the Schedule D. If it wasn't there, how did IRS see that as a mistake unless you were claiming a capital loss without a Schedule D, in which case, it seems to me you won't save $75 by filing it, but that you will stop IRS from assessing you an additional $75 of tax when they take the loss off the return. Or is this just semantics. You're out $75 unless you support the loss with a Schedule D, right?
If the IRS sent you a notice that they had adjusted your self assessment due to a math error, a letter, and the missing schedule, is all you need to send. It is also all you should send. A 1040X is unnecessary and could delay a resolution by months.
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