Amended 2021 return and affect on refund applied to 2022

[Drphibes]

So, I have a client that applied his refunds to 2022 who then received amended K-1's recently which would normally lead to tax due.  His amounts applied to 2022 would cover the amount due and still have a substantial amount going to 2022.  However, I can't get Lacerte to adjust the refund amount to apply to 2022.  The 1040X shows the entire original refund amount applied and over $20,000 owed with the amendment (which would lead to substantial penalties and interest). 

Questions are (and I spent a good time on the IRS site trying but unable to find an answer):

1. Can the 2021 refund amount going to 2022 be changed by virtue of a 1040X?  If so, how to get Lacerte to do that.  I have been trying to get the program to do just that but the program keeps trying to apply the entire original refund leaving tax due on the amendment.

2. If can't adjust the amount applied to 2022, can the new amount of refund on the 2021 1040X be fully refunded by virtue of the 1040X?  If I remove the previous refund and applied amount in the 1040X entry area, it shows the refund but is it legal or is the client locked into having to pay tax with the 1040X.

Thanks in advance everyone.

[BobKamman · Accepted solution]

The train has already left the station.  No, absent special circumstances, you can't adjust the credit-elect to a lower amount.  Special circumstances would be, for example, death of the taxpayer.  Or maybe just floods and fire or other federally-declared disaster.  It's like getting back an estimated tax payment once the check is cashed.  

Tell your client to stay away from those flaky partnerships and he won't have to worry about amended K-1s.

[Drphibes]

Actually a Trust where the institutional trustee failed to get all the 1099's to the 1041 preparer for the original return.

Thanks for your help!