Do You Need to Amend Your Tax Return?

Taxpayers who discover they made a mistake on their tax returns after filing can file Form 1040X, Amended U.S. Individual Income Tax Return. Reasons for filing an amended tax return may include:

● correcting your income (such as when you receive a corrected W-2 or 1099), ● claiming deductions or credits you may have overlooked, or ● correcting your filing status or the number of dependents you claim.

You do NOT need to file an amended tax return to correct math errors. The IRS will correct those for you. Likewise, you do NOT need to amend your return if you forgot to include a required form or schedule. The IRS will mail a request to you, if needed.

If you need to amend tax returns from multiple years, complete a separate 1040X for each tax year. Mail each tax year’s Form 1040X in separate envelopes.

If upon amending the tax return you owe more tax, you should file Form 1040X and pay the tax as soon as possible. This will limit interest and penalty charges.

To claim a refund, you must file a Form 1040X within three years from the date you timely filed your original tax return or within two years from the date you paid the tax, whichever is later.

The IRS's Right to Retain Representation

IRS Publication 1, entitled "Your Rights as a Taxpayer" (https://www.irs.gov/forms-pubs/about-publication-1), includes a full list of taxpayer rights. One of these rights is the Right to Retain Representation.

You may select a representative, such as an attorney, CPA, or another authorized person, to represent you in an interview with the IRS. Your representative can attend the IRS interview on your behalf, and you do not need to attend with your representative.

You must prepare Form 2848, Power of Attorney, to designate your representative(s). The representative(s) you select must not be disbarred or suspended from practice before the IRS.

IRS WARNS OF NEW TWIST ON PHONE SCAM

The Internal Revenue Service warned of a new twist on an old phone scam to trick taxpayers into paying non-existent tax bills.

In the latest version of the phone scam, fraudsters are able to fake or “spoof” the Caller ID to display the local Taxpayer Assistance Center (TAC) telephone number. The fraudster invites the taxpayer to look up the local TAC office telephone number online to "verify" the phone number. The fraudster hangs up, waits a short time and then calls back a second time after the taxpayer has “verified” the phone number. The fraudster then resumes their demands for money.

Fraudsters also have been similarly spoofing phone numbers for local sheriff’s offices, state Department of Motor Vehicles, and other government offices to convince taxpayers the call is legitimate.

Taxpayers receiving such calls should report them to the IRS using the IRS Impersonation Scam Reporting form, https://www.treasury.gov/tigta/contact_report_scam.shtml or by calling 800-366-4484 or by emailing phishing@irs.gov with the subject line “IRS Phone Scam.”

Note that the IRS will NEVER:

● Demand that you use a specific payment method. ● Ask for your debit or credit card numbers over the phone. ● Threaten to bring in local police, immigration officers or other law enforcement to have you arrested for not paying. ● Threaten to revoke your driver’s license, business licenses, or immigration status.