Superseded Return Didn't Supersede

Forum|Forum|5 years ago
May 24, 2021
1 reply
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Hello,

TT changed one of their income sections from 3 options to 2 and I selected the wrong one. Thought I was getting a refund due to new Covid tax changes. ESubmitted the return latter part of April then realized I chose the wrong option and actually owe them which I originally thought. Within an hour of Esubmitting I did a Superseded return, wrote Superseded in red on the top and mailed it in with a check. TT wouldn't allow me to resubmit the corrected return and it was too early to do an amended return.

My bank statement shows 8 days after submitting both returns IRS cashed my check but on the same day issued me a refund to my bank account. I thought a Superseded return was to take precedence over any prev returns. I know the refund the IRS sent needs to go back to them.

Will they be sending me a notice I need to send it back? Will they wait several months so I have to pay interest?

Any suggestions what I need to do?

Thanks

Critter-3

Level 15

And this is why you NEVER amend (not superseded ... that is a business return designation only) a return before the original return was fully processed ... that was the reason for NOT letting you amend too soon. If this is for a personal return then you should have mailed in a form 1040X (not an original 1040 with red letters on top) so although the check you sent was cashed right away it is highly unlikely the new 1040 will ever be looked at ... if it is it will be months from now.

Now if you did mail in a 1040X was the amount on line 18 the original refund you did get ? If so the IRS will eventually process the amended return and all will be right.

If you sent in a 1040 by accident then WAIT for the IRS to ask what that payment was for ... only then should you respond with the correct 1040X form ... please don't jump the gun again and make things much worse.

wxwx

Level 2

I have seen several of your replies in different places admonishing the filing of a superseding 1040 return. While I do understand the temporary confusion and delays these may cause, there are cases (which I won’t go into here) where filing a superseding return before the filing deadline would be the preferred method over filing an amended return after the filing deadline. One can find online articles by the National Taxpayer Advocate Service, an organization within the IRS itself, (as well as articles on other reputable financial sites), on how to file a superseding personal (i.e., 1040) return. The problem that arises is that unfortunately the IRS agents processing the returns don’t know how to handle them; that is, there a disconnect between the advice given to taxpayers and the training of the agents processing the returns.

While it is clear that a mailed superseded return would almost never be received in time to intercept an “erroneous refund” from an originally filed electronic return, eventually the superseding return (if postmarked before the filing deadline) should completely replace the original return and the taxpayer shouldn’t be charged interest if the correct payment was made when the superseding return was filed and the erroneous refund was timely returned. It does take time to sort out, so it’s something you absolutely want to try to avoid if possible. But, if taxpayers are being advised that an option is available, they shouldn’t be penalized or chastised for trying to responsibly follow the revision procedures just because agents aren’t trained on how to process these. One can find case law affirming the validity of superseding 1040 returns. These past two years have just been so overwhelming that patience and understanding is needed all the way around - by taxpayers and the IRS … as the IRS should continuously strive to improve clear communications and agent training.

Sent from my iPad

cust25yrAuthor

Level 2

Ok ... first the superceeded return (that had to be mailed in) takes months to process and since it is so rare for a personal return to be superceeded (since amending is the most common way to change a return) it is very possible that the data input operator at the IRS simply thought it was a duplicate return and put it in the trash. And an amended return can be filed anytime after the original return was filed although it is best to wait for the original return to be fully processed first. So you did not have to wait until July to amend the return. At this late date, since you are talking about a 2019 return, I highly suggest you check the return transcript to see what the IRS has on file for you and if the "superceeded" return has not been registered yet then file the proper amendment instead now.

Thanks again for your response.

It was not a 2019 return but a 2020. I filed it Mid April 2021. I only received a letter from last day of June, 2022.

That's really scary they have a paper return with LARGE RED LETTERS at the top SUPERSEDED RETURN (as IRS Doc instructed) gets thrown in the trash. WOW!!! What type of people there can't distinguish large red letters "Superseded" on them? 2 returns, one they refund and the other with a check attached that they cashed and they don't wonder why the paper one has a check attached and large red letters?

No, I wasn't allowed to submit an Amended Return until after the filing deadline, July 15. Turbo Tax doesn't allow it and I thought the IRS rules were the same. Since it's 1 year and several months later I can't submit an amended return at least through Turbo Tax. It made no sense to wait 3 months to submit an Amended return when I could send a Superseded return 1hr after the mistake. No reasonable person would think an agent with a return with large red letters on it and a check attached would throw it out or ignore it when the rules are they are supposed to use it instead when it says Superseded Return at the top. The incorrect return isn't even supposed to be processed if they have both, which they did.

I looked at the transcript for my 2020 return and didn't see anything that mentioned Superseded. The AGI shown is from the incorrect e-filed return. Where would it say Superseded in the transcript?

Thanks