Schedule E physical rental property address.

[Coca2cola]

I have a schedule e form from tax year 2022 with the wrong address for a rental property. I was wondering, does this address being wrong affect my return from last year? Do I need to file an amended return when all my numbers are the same just the address was wrong? 

[jtax · Accepted solution]

There is never a duty to amend are return for an honest mistake. The reason to file an amended return is to get a refund or to pay extra tax owed thereby stopping interest from accruing.

I would just correct the address this year. Perhaps include a statement to that effect.

It would be harmless to file an amended return if you want to. I doubt the IRS will ever notice the difference or care. If they did you will have all of your records (property tax, leases, etc.) with the correct address and the same numbers. 

[DianeW777]

Change the address on the 2023 tax return.  Use the Property Profile to make the change when you are in the rental activity.

To clarify:  An amended return is required if you discover an error in the income, dependents, deductions or credits, whether you intended to or it was a mistake.  However, in your situation there is no change to the outcome of the tax return overall tax results.  You do not need to amend to change the address but do keep a note with your tax return for 2022 and 2023 should you need it later.

@Coca2cola 

[jtax]

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To clarify:  An amended return is required if you discover an error in the income, dependents, deductions or credits, whether you intended to or it was a mistake.  

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No an amended return is never "required." A taxpayer might want to file an amended return (to get a refund, stop interest from accruing, etc.) but there is no requirement to do so. 

For my authority for this see page 228 (pdf page 7) this law review article and the statutes, regulations, and cases it cites.

https://digitalcommons.unl.edu/cgi/viewcontent.cgi?article=1505&context=nlr

which says:

Treasury regulations permit the filing of amended returns for purposes of correcting errors and making or changing various tax elections. The regulations do not, however, impose a duty on taxpayers
to file amended returns.  Treasury regulations provide that if a taxpayer "ascertains" that income was improperly omitted from a prior year's return, the taxpayer "should, if within the period of limitation,"
file a corrected amended return and pay any additional tax due.  If the taxpayer "ascertains" that an item was improperly included in income on a prior year's return, the taxpayer "should, if within the period of limitation," file a claim for credit or refund of any resulting tax overpayment.  Similarly, Treasury regulations provide that if a taxpayer "ascertains" that a liability was improperly omitted from a prior
year's return, the taxpayer "should, if within the period of limitation," file a claim for credit or refund of any resulting tax overpayment. If the taxpayer "ascertains" that a liability was improperly claimed on a
prior year's return, the taxpayer "should, if within the period of limitation," file a corrected amended return and pay any additional tax due. Thus, the Treasury regulations encourage, but do not require,
the correction of tax return errors. Id. at 229 (citations omitted) (emphasis added).

The law review article goes on to review Tax Court and Supreme Court cases coming to the conclusion that amended returns are never required (even in the context of fraud!) but the author suggests that Congress should create such a duty for significant errors.