After I filed my taxes, Merrill Lynch released a late set of new Div and Int forms which changed my return amount. My initial filing was accepted by Federal and had a significant refund (several $k), but that refund is now too much by $1k (even with this $1k amendment owed, I still have a good refund due).
I started an amended return via TurboTax, and the amended return says I owe $1k (this is correct). It has been 12 calendar days since I filed my initial return, and I have not yet received the refund for the initial return. The IRS "where is my refund" shows that it was accepted but is still processing.
My fear is that if I file this amended return, the IRS will think I just owe $1k and ignore the refund I am still due. Should I wait to file my amendment until I get the initial refund? Is the Government withholding my initial refund because it is aware of the additional Div / Int forms?
I appreciate anyone's thoughts on this. Thank you.
You should always wait until you have received the refund from the original tax return before you file an amended return. If the IRS picks up the changes you might get a notice from them or they might adjust the refund on the original return. If they process the original return as-is and send you the refund, then go ahead and file the amended return.