This is actually about my Pittsburgh local tax, but I think the question could be generalize to all states and federal amended return filing.
Here is my situation, I filed my local tax last year on time, and requested a refund for about $1000. However, I find that I forgot to include some of the income that may increase my tax liability by only about $20. Therefore, the correct refund should be $980 instead of $1000. However, since it was a year ago, I am wondering if I need to pay for the penalty and interest for the $20.
I guess I should pay for that, but how can I calculate it on my tax form? On the tax form, it still shows that I should get refund of $980. Therefore, it doesn't make sense to calculate penalty and interest on the tax form. I guess what I could do is that I don't need to calculate penalty and interest on the amended tax form, but make a statement and calculate the penalty and interest for the $20 by myself.
Let me know what you think. Thanks!
Yes, you would owe interest and penalty on $20 of unpaid tax if you received a $1,000 refund but should have only received $980.
Your amended return should show a balance due of $20, not $980.
Contact Pittsburgh’s tax administrator, Jordan Tax Service, for help.
"federal amended return filing"
IRS says:
On Form 1040-X, do not include penalties and interest already paid or expected to be charged.
IRS will re-calculate and send you a bill.