How to file a Superceding Form 1040 / CA 540

[Buffytaxpreparer]

Need to fill a superceding Form 1040. Can it be electronically filed or must it be paper filed? How do I indicate it is a superceding return? I can use either Basic or Professional ProSeries
Missed a brokerage statement on return efiled today. 😞

[abctax55 · Accepted solution]

Paper file only..write superseding return on the top. Wait for IRS letters, especially since the IRS isn't processing paper returns right now.

[Buffytaxpreparer]

(sobbing) If ever there was a year for this to happen, it's a doozy. The missed 1099 has $17k in dividends and $2.175M (yes) in gross proceeds. Yields large capital loss carryover.
Thank goodness HUGE refund on the originally filed return.

Strategy question: The refund on the original file was split between direct deposit refund and 2020 estimated tax. Is it cleanest to get the full refund or apply the full refund to 2020 estimated tax payment?

California works same way? Paper file writing Superseding in the return?

[Just-Lisa-Now-]

Id use the Sch X/Amended box  for CA, I wouldnt try the superseding thing...

Im not sure Id even do superseding for federal....the paper data processors (once they start working again) will be swamped with paper returns, they're more used to seeing a 1040X,  the chance they screw up a superseded return is higher.

[BobKamman]

I had never heard the term "Superseding Return," but apparently IRS has and it's a term of art.  So it doesn't matter whether it's a new 1040 or a 1040-X, it's the filing date that counts. 

21.6.7.4.10 (07-22-2019)

Superseding Returns

1. The due date of a calendar year individual income tax return is April 15th. If April 15th falls on a weekend or holiday, the return is due on the next business day. A fiscal year individual income tax return is due the fifteenth day of the fourth month following the close of the fiscal year.

   1. An amended (Form 1040-X) or corrected (duplicate) return filed on or before the due date or the extended due date is a superseding return.

   2. Correspondence postmarked on or before the due date or extended due date, requesting changes to tax returns, is processed as superseding information.

2. Consider the following when making a superseding adjustment:

   • Changes in irrevocable elections (e.g., Section 179, Joint to Separate)

     Note:

     A return filed after the original due date but on or before the extended due date does not constitute a superseding return in this situation.

   • Manual computation of ES Penalty. Refer to IRM 20.1.3, Estimated Tax Penalties.

   • Reversal of offsets to other Individual Master File (IMF), Business Master File (BMF), and Debtor Master File (DMF) accounts when increasing the balance due

   • Returns meeting Examination criteria. Follow procedures in Exhibit 21.5.3-2, Examination Criteria (CAT-A) - General.

   • Reversal of the offset to the Treasury Offset Program, refer to IRM 21.4.6.5.7.1, Allowable TOP Offset Reversals.

   • Use the appropriate non-refile blocking series (e.g., 05, 77, 99, etc). Refer to IRM 21.5.1.5.3, CIS Source Documentation, and Document 6209 - Section 4 - Adjustment Blocking Series, for additional information.

   • Use item reference number 871 when necessary. Refer to IRM 20.1.2.2.6.2, Incorrect Tax Shown Recorded, and IRM 20.1.2.2.6.3, Wrong Return Posted First, for additional information.

   Exception:

   Use the appropriate refile blocking series when required to be associated with the original return (e.g., separate to joint).

[kanchan-textax-u]

How to Superseed the tax return in CA as the same is giving me the error message as the federal is accepted but State of Cali has got rejected in prorconnect.

[Just-Lisa-Now-]

What type of tax return?  If its a 540, a superseding return has to be mailed.