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Can I immediately file an amendment to a tax return when payment is owed on both original and amendment?

Level 7

Tax payer owed over 25,000 to the irs with 2 $7500 ira deposits included.   Found out after the fact that the IRA's were applied to the year we are in and not to 2023!  He will owe a couple thousand more now.. how long must I wait or can I just do it and he sends in the second round of payment?

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4 Comments 4
Level 11

1. can the financial outfit correct the deposits to be for 2023?

2. if not, yes you can amend 2023 taxes and have the payment be made for the difference as long as the first return has been accepted

Level 15

If the IRA administrator made an error then I would ask them to correct it and apply the IRA contributions to the correct year. My experience is that they usually will correct it as they want to keep their client happy.

Level 15

I don't think the IRA trustee reports to IRS which year the contribution was designated for.  Your client can tell them before the 2024 contribution is made, I'm sure they will take the money.  

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Level 15

It seems the payments were made timely to the tax year 2023 contribution deadline, so that would be designated for which tax year and this is reported on Form 5498. If the taxpayer made the error, it's really easy to recharacterize it. I've seen where the IRA provider offers this function on the management website, even. If the provider did this, they also can recharacterize it.

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