Typically, the IRS takes the position that if you are filing an extension of time to prepare the return, it is merely just an extension of time to prepare. It does not extend the time that you have to pay any expected liability. What this means is that if you have any reason to suspect that on your return, there will be some type of tax liability, the IRS holds the position that you must send some type of estimated payment with your extension to file.
Can I Amend My Tax Return To Change My Filing Status?
One of the most common reasons people want to look at amending their tax returns is that they have either filed married filing joint or married filing separate and after they have their return prepared, they begin to wonder, could they have gotten some additional benefit by altering their filing status. In the case of couples that file separately, the IRS holds that as long as you file within the timeline that you have allowed to file an amended return, you can change your status from married filing separate to married filing joint. The standard timeline to file an amended return is 3 years after the return is due. So if you want to combine returns with your spouse, the IRS does allow that.
Going the other way, if it’s a married filing a joint return the IRS changes how they allow that amended return to be processed. If you are going from married filing joint to married filing separate of one to two returns, the IRS holds that you only have 6 months from the time that you filed the return in order to then separate out those returns to a different status. Finally, if you file single and decide if you want to try to claim some dependents on your return, you can go from single to head of household as long as you file an amended return within that 3 years statute.
What Should I Do If I Owe Additional Money after Amending My Return?
One reason to file an amended tax return is because you have failed to disclose your full income for the tax year. So then, once the return is already filed, you are going back through your records and you may realize, Oh I forgot to include something on my return. So then, you must file an amended return. By including additional income on your return, you are increasing the likelihood that you will then have a greater tax liability than when the original return was prepared. As we tell all of our taxpayers, just because you owe on an amended return or on an original return does not mean that you should not file the return, you should always file the return as quickly as you can to correct any mistake regardless of your ability to pay.
The IRS holds that if you do file an amended return that increases your liability, as long as that amended return is filed by the filing date, they cannot assess penalties for failure to disclose income. If you wait a year or two years after the return has been filed to amend it then the IRS may assess either penalties and most definitely will assess interest on that increased liability amount.
For more information on Payment With Tax Return Extension In SC, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (864) 271-7940 today.