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DebtHelp.com Tip: You realize after filing your tax return, that you forgot to record a huge chunk of income on your tax return. Or, you find out that you could have claimed more deductions. So, you have received an IRS Notice stating the findings in which you are charged new taxes, penalties, and interest. You need tax debt help. What can you do to correct this?
Use IRS Form 1040-X to file an amended return. There are stipulations that apply to filing an amended return. They are not to be used simply to lower your tax debt. They are to be used only for an honest oversight causing your tax return to have errors.
Form 1040X– Amended U.S. Individual Income Tax Return. You must file your amended return within three years from the date you originally filed your tax return. For instance, to file an amended return for your 2005 tax return, you have until April 15, 2008 to file an amended return.
You will need to mail in to the IRS service center where you normally mail your tax return to. When you do mail your amended return in, be sure to keep a copy for your own records
When you complete Form 1040X, you need to have your original tax information available. This is due to the fact that you need to write in your original income, deductions, and any credits taken on your original tax return. You also will report the changes you are making, and any correct amounts. This can simply be done by crossing out the original figure and writing in the new/correct figure. Be sure to cross reference the new figure to a supporting schedule and/or form explaining the change. (This will be a separate attachment to your amended return). Finally, figure your new tax based upon these new figures. Include your tax payment, if any, along with your amended return.
You can use this form to correct a mistake or to claim a refund on the original income tax return. For instance, if you did not report some income (like when you receive a Form 1099 after your filed your 1040), you claimed deductions or credits you should not have claimed or vice versa.
If you find that you need to make changes on more than one past return, use a separate amended return for each year. Do not combine figures from different years into one amended return, in other words.
Be sure that when you complete your amended return Form 1040X, that you provide the IRS with details about all the changes you are making. It is recommended to explain these changes by developing schedules and forms that suit your purpose. Be sure to attach any of this additional information to your Form 1040X. By explaining your changed items thoroughly and in easy-to-understand terms, you may receive some tax debt help from the IRS in the form of a lower tax bill.