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.
