Gary Bode, CPA: If you need some help preparing IRS Form 1040X to amend a prior return, please consider calling us at (910) 399-2705 for a free initial consult
Amending a prior year’s IRS tax Form 1040 is done by submitting Form 1040X. There can be lots of reasons for filing Form1040X. Here’s an example. You receive an IRS Notice stating they received a Form 1099-C which is not on your 2008 Form 1040 return. Form 1099-C reports cancelled debt, which becomes taxable income in some cases. So the IRS is kind enough to calculate the additional tax, interest and penalties due on the notice. Ouch! But you were transferred to a new city by your job in 2008. You tried to rent out your house unsuccessfully, and didn’t understand the associated expenses were deductible on your original Form 1040 despite receiving no rent in 2008. Your 1040X for 2008 would include the additional taxable income from the cancelled debt (Form 1099-C) and the unclaimed residential rental expense deductions.
“The hardest part of preparing Form 1040X is the line by line explanation required for all the changes.”
Gary Bode, CPA and Wilmington NC tax accountant
The steps in IRS Form 1040X tax preparation include:
- Preparing a new, correct IRS taxForm 1040 for the year.
- Noting all the changes between the original and the corrected Form 1040.
- Filling out Form 1040X.
- File Form 1040X with appropriate components of the corrected Form 1040.
If you receive an IRS notice and need some help in preparing Form 1040X, please consider calling us at (910) 399-2705 for a free initial consult.
