Is it a big deal to amend a tax return?
Your amended return may prevent having to pay steep penalties for underreporting income, which the IRS can impose if you fail to include income. Penalties are 20% of the tax owed on the underreported income, plus interest. (The IRS will send you a notice if you owe an accuracy-related penalty.)
If you file an amended return, you should still get the refund figured on the original return. Then, if your refund is larger due to the change, you'll get the difference between the original and amended amounts.
Note: filing an amended return does not affect the selection process of the original return. However, amended returns also go through a screening process and the amended return may be selected for audit. Additionally, a refund is not necessarily a trigger for an audit.
Don't underestimate the benefits of filing an amended return, either. By making sure your tax return is accurate, you can maximize your refund or lower what you owe. You'll also reduce the risk of receiving a notice or IRS audit in the future.
If you discover an error on a previously filed return, you should file an amended return and pay any additional tax or fee due, including interest. If you have questions, please contact our Customer Service Center at 1-800-400-7115. For assistance in calculating the interest due use the Interest Rate Calculator.
Although the IRS appreciates when taxpayers file an amended return to correct a mistake, they can still assess a penalty or charge interest for not paying the proper amount when the taxes were originally due.
See step-by-step instructions on how to e-file a current tax year tax amendment. Previous year amendments can be completed for free, but will need to be mailed in as the IRS does not accept e-filed returns for years that have passed. It does not cost anything to fill in and mail a tax amendment.
When it comes to audited and amended returns, the consensus among IRS officials and professionals is that filing an amended return does not automatically trigger an audit. However, specific changes to the amended return, such as substantial modifications to income amounts or deductions, could raise red flags.
As a reminder, amended returns take up to 16 weeks to process. It can take up to three weeks after filing it to show up in our system.
You can check the status of an amended return around 3 weeks after you submit it. It will take up to 20 weeks to process your return.
When not to file an amended return?
- You got an IRS CP2000 notice (also called an underreporter inquiry). ...
- You got an IRS audit notice. ...
- You forgot to attach a copy of your W-2. ...
- The IRS rejected your e-filed original return. ...
- You made a calculation error on your return. ...
- The IRS prepared a return for you.
If the IRS rejected the amended tax return because of a procedural error (usually with IRS letter 916C), it might be as simple as refiling the amended return, providing proof of an item on your return, or filing an additional form.
No. Amending won't delay your original refund. However, if you're amending to claim more money, the IRS says to wait until you've received your original refund before filing an amendment.
The Internal Revenue Service uses a combination of automated and human processes when selecting which tax returns to audit. All tax returns are compared with statistical norms, and those with anomalies undergo three layers of review by personnel.
But higher-income earners can face increased scrutiny. The odds rise for those reporting income over $200,000 and, according to research from Syracuse University published in January, millionaires are the most likely to be audited out of any income bracket.
Regardless of whether you're among the "high-income, high-wealth individuals" the IRS is targeting this year, your chances of being audited are still pretty slim: Of the roughly 165 million returns the IRS received in 2022, approximately 626,204, or less than 0.4%, were audited.
Typically, the IRS can include returns filed within the last three years in an audit. If it finds a "substantial error," it can add additional years but it usually doesn't go back more than the last six years.
Amended return status
Check the Where's My Amended Return? online tool or call the toll-free telephone number 866-464-2050 three weeks after you file your amended return. Both tools are available in English and Spanish and track the status of amended returns for the current tax year and up to three prior tax years.
You can file up to 3 amended returns for the same year. File on paper if you're amending a return you originally filed on paper and Forms 1040 and Form 1040-SR, U.S. Return for SeniorsPDF before 2020, and Form 1040-NR, Nonresident Alien Income Tax ReturnPDF before 2021.
Beginning with amended returns processed in 2023, taxpayers can elect to have their refund sent to them by mailed check or direct deposit. If mailed check is selected, please confirm the address is correct by visiting the Basic Information section of your account.
Does H&R Block charge for amended return?
If you discover an H&R Block error on your return that entitles you to a larger refund (or smaller tax liability), we'll refund the tax prep fee for that return and file an amended return at no additional charge.
Run a cash-heavy business. If your business typically deals with a lot of cash, you're more likely to be audited. The IRS has found a tendency among cash-business owners to “forget” to declare some cash income that might otherwise be reported, and targets these businesses more aggressively.
Not reporting all of your income is an easy-to-avoid red flag that can lead to an audit. Taking excessive business tax deductions and mixing business and personal expenses can lead to an audit. The IRS mostly audits tax returns of those earning more than $200,000 and corporations with more than $10 million in assets.
Tax Group, the IRS classifies most errors as honest mistakes — but that doesn't mean you're off the hook. If an audit finds that you underreported income, claimed credits you weren't owed or otherwise didn't satisfy your tax obligation, you'll owe what's due plus any interest that accrued.
Filing a tax return with missing schedules or not providing all the information asked for on the forms can increase your chances of being audited. Similarly, a sloppy return, especially with math mistakes, increases your chances of an audit.
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