Is it better to file an extension or amended return

The late-filing penalty wouldn't begin until October 15 if you don't file by that time. Some people end up filing several years late, and there's a three-year deadline for receiving a refund check from the IRS if it turns out that you're due one. This three-year statute of limitations begins on the original filing deadline for that year usually April The refund statute of limitations is also extended by six months when you file for an extension, which can preserve the ability of taxpayers to receive their federal tax refunds, even if they're behind with submitting their tax returns.

Filing for an extension provides these taxpayers with an additional six months to do so. Solo k and SIMPLE plans must be set up during the tax year, but actually funding the plan can occur as late as the extended deadline for the previous tax year.

Independent contractors and other self-employed taxpayers can open and fund a SEP-IRA for the previous year by the extended deadline as long as they've filed an extension. A wide variety of decisions must be made when you're preparing your tax return. It can take some work and maybe a consultation with a professional to determine whether you're actually qualified to take certain deductions and credits—and whether it's really in your best interest. Filing an extension gives you extra time to mull it over or to seek help.

There's an inevitable rush to get tax returns finished by the April deadline, and taxpayers and accountants alike can make tax filing mistakes when they're hurried and under pressure. An extension gives you or your accountant extra time to go over your return to make sure everything is complete and accurate before you send it in. Extensions also provide extra time to file your gift tax return if you've been particularly generous during the year.

Some accountants and even tax preparation software are free to raise their fees in the weeks leading up to the April deadline, only to drop them again during the slow spring and summer months. Price-sensitive taxpayers can save money by shifting tax preparation to a time when their accountant is less busy and charging a lower fee. An extension won't address all your tax dilemmas. Some deadlines remain carved in stone, regardless of when you file your return.

Married taxpayers who file jointly before the April deadline still only have until April 15 unless you are subject to a disaster relief exception to amend their tax returns to switch to the married-filing-separately status.

You must make this election by the original April 15 due date unless you are subject to a disaster relief exception. The IRS will most likely think you have to file a tax return if you ask for an extension. The agency might ask you to file a return anyway, because you filed an extension to ask for additional time, then ended up not filing—perhaps because you realized that you don't meet the income requirements.

You might want to file a tax return even if you don't have to. Is it appropriate to file for an extension, or an amended return? Is one way better or the other? Yes, you can and should file an extension. It is "not" an extension to pay any taxes that may be due. You can pay online if you want, at www. Finally, if your state taxes personal income you will need to file for an extension with your state too. Then if you think will you owe your state, you will need to pay your state taxes too, separately from your federal taxes.

Planning Tip — Filing a late Form almost always indicates an underlying organizational problem that should be examined and corrected. Take steps to identify how you got into this predicament and implement measures to ensure it does not happen again. If you have a question you would like to submit to SE4N, send it to us using the contact form and we will consider answering it in a future post.

Please do not send confidential information. This could prevent problems later, like notices or an IRS audit. Amending a return is not unusual and it doesn't raise any red flags with the IRS. In fact, the IRS doesn't want you to overpay or underpay your taxes because of mistakes you make on the original return you file. Whenever someone files an original or amended tax return , the same audit selection process prevails. Generally, it can take up to 16 weeks from the day the IRS receives your amended return for it to be processed, and it may take 3 weeks from the day you mailed it for it to show up in the IRS system.

An amended return is a form filed in order to make corrections to a tax return from a previous year. An amended return can be used to correct errors and claim a more advantageous tax status—such as a refund. For example, one might choose to file an amended return in instances of misreported earnings or tax credits. How long after amended return is adjusted?

My amended return has been adjusted, when will i receive the check? Amended returns can only be mailed. It can take them 16 weeks for the IRS to process them. And they only mail checks for refunds. Can the IRS reject an amended return? It is not uncommon for the IRS to reject an amended return because the explanation was insufficient. Be concise and explain the changes you are making and the documentation you provided to back up the changes.