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1040X Calculation

Ochumare
Level 3

Hello Guys,

In error; last night I filed a personal tax return and forgot to include figures from a W2.   As the original return was filed, client showed a refund of $5K.   Today, I am correcting that mistake and amending the return to include figures from W2.  Now it shows tax payer owes $6K to the IRS.  In real life, the tax payer only owes $1K as they have not yet received the $5K refund.   In Proseries Basic - form 1040X, Line 17A, automatically populates the "refund" amount as paid, which in my case is not true as it was filed last night.

My question is:  Should I put $0.00 on line 17A (since tax payer has not received the refund) or leave the automatically populated amount of $6K?

I just don't want to create possible issues with the IRS and tax payer.

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1 Solution

Accepted Solutions
Just-Lisa-Now-
Level 15
Level 15
You really shouldn't file an amended return until the original has completed processing and the refund received. IRS may catch this omitted W2 automatically.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

View solution in original post

9 Comments 9
Just-Lisa-Now-
Level 15
Level 15
You really shouldn't file an amended return until the original has completed processing and the refund received. IRS may catch this omitted W2 automatically.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
GodFather
Level 8

I agree with Lisa but wonder if a phone call to the Practitioner Hotline may help some?  Informing them of the issue and allowing them to provide some guidance.  

 

 866-860-4259

sjrcpa
Level 15

I wouldn't bother. You probably won't even get through.

Tell the client to hold onto the $5K when they get it because they will need to pay it back.


Ex-AllStar
Ochumare
Level 3

Thank you so much for your recommendation.   Will put it into practice.

Ochumare
Level 3

Thanks for the support and providing phone number

Ochumare
Level 3

Good idea.   So much appreciate your support

BobKamman
Level 15

IRS is not going to catch any omitted W-2, that's the whole problem with their document-matching system.  And even if e-filed, the amended return won't be reviewed by an IRS clerk, as they all are, until after the original is processed.  The goal now should be to stop the issuance of a huge, undeserved refund, so that you are not telling your client to put the money in the bank and then pay it back a few months later.  E-file the amended return NOW.  

GodFather
Level 8

Keep us posted.  I'm curious if you get through and what they advise. 

BobKamman
Level 15

Abandon all hope, ye who call someone who was hired last week and has never prepared a tax return for a paying client.  No wonder IRS has a backlog of 9 million 1040's to process -- they have to hire people to hold hands.

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