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Hello Guys,
In error; last night I filed a personal tax return and forgot to include figures from a W2. As the original return was filed, client showed a refund of $5K. Today, I am correcting that mistake and amending the return to include figures from W2. Now it shows tax payer owes $6K to the IRS. In real life, the tax payer only owes $1K as they have not yet received the $5K refund. In Proseries Basic - form 1040X, Line 17A, automatically populates the "refund" amount as paid, which in my case is not true as it was filed last night.
My question is: Should I put $0.00 on line 17A (since tax payer has not received the refund) or leave the automatically populated amount of $6K?
I just don't want to create possible issues with the IRS and tax payer.
Best Answer Click here
Just-Lisa-Now-
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♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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I agree with Lisa but wonder if a phone call to the Practitioner Hotline may help some? Informing them of the issue and allowing them to provide some guidance.
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I wouldn't bother. You probably won't even get through.
Tell the client to hold onto the $5K when they get it because they will need to pay it back.
The more I know the more I don’t know.
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Thank you so much for your recommendation. Will put it into practice.
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Thanks for the support and providing phone number
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Good idea. So much appreciate your support
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IRS is not going to catch any omitted W-2, that's the whole problem with their document-matching system. And even if e-filed, the amended return won't be reviewed by an IRS clerk, as they all are, until after the original is processed. The goal now should be to stop the issuance of a huge, undeserved refund, so that you are not telling your client to put the money in the bank and then pay it back a few months later. E-file the amended return NOW.
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Keep us posted. I'm curious if you get through and what they advise.
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Abandon all hope, ye who call someone who was hired last week and has never prepared a tax return for a paying client. No wonder IRS has a backlog of 9 million 1040's to process -- they have to hire people to hold hands.
