A few days ago, I received a letter from the IRS saying I needed to add a Schedule C to my tax return in addition to my Foreign Earned Income (FEI). I amended this on TurboTax, but it seems that TurboTax instead doubled my income on the Foreign Earned Income (putting it twice) and did not put a Schedule C, and the amendment has already been e-filed and accepted by the IRS.
TurboTax has an option to do a second amendment online, but I am not sure if I should wait for the current amendment to be fully processed and to wait for a letter from the IRS again about it.
So my question is this: Is it appropriate to e-file a second amendment with the correct information, or is it best to allow the first amendment that has errors to be processed first?
@js733 ,
assuming that your situation is "self-employed " Foreign Earned Income exclusion. Yes you needed a Schedule-C and generally a Schedule-SE ( for the SECA taxes ), depending on the country your tax home is/was.
Since IRS has already contacted you and you have taken curative action, it is best to wait for the amended return to be processed. Recognizing the error ( because you entered the FEI on 2555 without creating a Schedule-C first ), of double income and taxation thereof, I would contact IRS once the processing is complete and seek suggestion whether to file another amended return and/or how to proceed.
If the amended return did not include the Schedules needed and just double the income, then I don't understand what took place here and/or how you entered the income. But I would still contact the IRS once the processing is complete --- because I think at this point you account is having human intervention.
Are you using a windows desktop version or on-line ? If on-line , I am not familiar with that product line and have to get somebody else to help you.
It is the online version. For the online version, TurboTax allows you to check the information you have imputed but not in the specific file. For example, TurboTax online says I put in X dollars, but when you check the actual form that is created after submission, it says I made Y instead.
@js733 ., I will ask another person to help here -- I do not know the On-line product at all.
There should be a contact soon.
pk
Since you already submitted the amendment, it would be best to wait until the IRS processes that amendment, even if it has errors. You have plenty of time to file the amendment and as pk mentioned above, the IRS knows you are taking curative action to rectify the situation. There is no reason to start a second amendment at this point; it will only further complicate matters.
Once the erroneous amendment is processed, the IRS will likely notify you of the missing Schedule C again. At that time, you should have all the information you need to prepare a corrected return. @js733