Hello,
I am in the process of submitting two 1040X Amended Tax Returns where I forgot to include some extra income from the years 2017 and 2018. They have just been mailed in along with the checks for the tax amount owed. My question is, particularly for the year 2017 (since that tax year's Statute of Limitations ran out back in April/May of this year), is that once this 2017 Amended Tax Return has been accepted, will they still accept the check/payment? Will they still process the 2017 1040X Amended Tax Return forms? And if so, can they still back go back and Audit the same 2017 Amended Tax Return if they want to- even after its Statute of Limitations has ran out a few months ago? I heard that once Statute of Limitations has ran out, that they cannot Audit the Return (unless the missing income reported on the Return was 25% or greater of the Amended Tax Year's previous total reported income, which it most definitely was not), though they will still accept the payment (though one person told me that they won't even do that and will send the check back to me. That sounds fishy however and has not been the normal reply I've gotten). I've also been told that submitting Amended Tax Returns does NOT restart or extend the Statute of Limitations period. But I'm not really 100% sure on any of this, and am kind of confused as to how this type of situation could play out.
And same question for 2018- given the huge backlog the IRS is dealing with in regards to Amended Tax Returns, and just people's taxes in general- I've been told that the IRS is about 6 months behind on processing Amended Tax Returns right now, which means by the time they get around to my 2018 Amended Tax Return, tax season (and thus the Statute of Limitations for the tax year of 2018) in the year 2022 may well and truly be ran out, and, assuming they get around to the 2018 Amended Tax Return too late, will end up in the same situation in regards to the Statute of Limitations scenario as written above.
Basically, how does the IRS approach Amended Tax Returns with payments owed by the taxpayer once the Statute of Limitations runs out in regards to processing the 1040X Amended Tax Return, processing the check payment/potential penalties and interest, and potential future Audits, if any (assuming the rare criteria has not been met to extend the Audit period for up to 6 years)?
Thank you.
