Amending Filed Return -- Sorry if this is a repeat

[w-burnham]

I posted this on the general Turbo financial forum rather than the TurboTax forum, so I am posting it here again:

IRS says: 

"Amending to claim an additional refund.  If you are waiting for a refund from your original tax return, don’t file your amended return until after you receive the refund. You may cash the refund check from your original return. Amended returns take up to 16 weeks to process. You will receive any additional refund you are owed.
"Amending to pay additional tax.  If you’re filing an amended tax return because you owe more tax, you should file Form 1040X and pay the tax as soon as possible. This will limit interest and penalty charges."

I have filed claiming a refund, but got a letter saying they are verifying things and would get back to me in 60 days (apparently called IRS 4464C letter).

I got a late 199R and am now amending to pay (substantially) more than my original return indicates is due. Should I --

(1) file the amended return now and include a check for the additional taxes (and then cash the original refund when I get it)?

(2) hold off on filing the amended return until I get the refund from the original return, then send it in with the check for the additional taxes?

(3) file the amended return now without any supplemental payment to cover the new tax amount?

The original amounts of taxes withheld and paid as estimated more than cover both the original tax amount and the additional taxes I owe on the amended return. I would wait for the original refund and then file the amended return with a check, but I am concerned that I will be hit with penalties and interest if I don't send the supplemental check in now before they process the original refund.

• Not A Product Question

[w-burnham]

IRS says: 

"Amending to claim an additional refund.  If you are waiting for a refund from your original tax return, don’t file your amended return until after you receive the refund. You may cash the refund check from your original return. Amended returns take up to 16 weeks to process. You will receive any additional refund you are owed.
"Amending to pay additional tax.  If you’re filing an amended tax return because you owe more tax, you should file Form 1040X and pay the tax as soon as possible. This will limit interest and penalty charges."

I have filed claiming a refund, but got a letter saying they are verifying things and would get back to me in 60 days (apparently called IRS 4464C letter).

I got a late 199R and am now amending to pay (substantially) more than my original return indicates is due. Should I --

(1) file the amended return now and include a check for the additional taxes (and then cash the original refund when I get it)?

(2) hold off on filing the amended return until I get the refund from the original return, then send it in with the check for the additional taxes?

(3) file the amended return now without any supplemental payment to cover the new tax amount?

The original amounts of taxes withheld and paid as estimated more than cover both the original tax amount and the additional taxes I owe on the amended return. I would wait for the original refund and then file the amended return with a check, but I am concerned that I will be hit with penalties and interest if I don't send the supplemental check in now before they process the original refund.

[w-burnham]

Should be 1099R not 199R. Sorry. Bill

[BillM223 · Accepted solution]

"(1) file the amended return now and include a check for the additional taxes (and then cash the original refund when I get it)?"

Yes, amend now.

The reason is that amended returns are taking forever to process, so your original return will likely be processed by the time your amended return gets looked at.

Besides, the IRS says (about a 4464c letter):

"

If you filed a return

• You don't need to take any action. Please do not call us until 60 days after the letter date and only if you haven't received your refund or heard from us by then.
• We recommend you review your return for any errors and file a corrected or amended return to correct the information.

"

Review the letter carefully and see if there are any instructions about amending your return or if they want you to send or fax the amended return to them. It's likely they want you to amend it the normal way, but you should do whatever the IRS letter asks you to do.

P.S. the amended return will assume that you will receive your original refund, so pay whatever the 1040X tells you to - it is assuming that you have gotten or will receive the original refund.

[w-burnham]

Your statement of the principle -- to act in a manner that "assume[s] that you have gotten or will receive the original refund" -- is helpful. I noticed IRS acted in accordance with it when they over-refunded on my 2019 return (what is it now?) 2 years after I filed the amended return and then they billed me for the difference in the two tax amount (no penalties, thank goodness).

I will file the 1040X now and send in the additional tax. Then things will be even when they finally (in 2023?) catch up with themselves and send me my original refund.

The 4464c letter was very non-specific as to what the items they needed to verify were ("income, income tax withholding, tax credits, business income"), so it is hard to know what they had in mind.  I hope this will satisfy them.

Bill