If you have detected errors in your tax return after it has been filed, you may need to file a modified return, depending on the type of error and the circumstances. However, it can be a difficult process to determine when to file a modified return. In some cases, taxpayers may note that their dividend income for the previous year has changed after receiving their return from their financial institution. If the change is a minimal amount, although it is sufficient to justify a small reimbursement, many financial advisors recommend that the difference be ignored. It would often cost you more than it would be worth to file the updated return. However, if you are informed of a pending refund for a large amount of money, you want to change your tune. The IRS suggests you file a modified return if your original return contains an error in the filing status. The status of filing may affect income, deductions and credits and taxpayers submitting an amended return should use Form1040X. It is also necessary to determine and comply with the specific requirements for your state.
According to the IRS, the best practice when you expect reimbursement from the original return is to wait until you have received the reimbursement. The processing of a Form 1040X request may take 12 weeks, but it is acceptable to cash the original refund check while waiting for a modified return. If you owe extra taxes, the IRS expects the balance to be paid as quickly as possible. To avoid unnecessary interest and penalties, you should live up to this expectation. Your amended return status is available three weeks after your submission. You can check the status on the IRS website (irs.gov) and click on the link: “Where’s My Amended Return?” If you have no internet access, you can call the IRS hotline at 866-464-2050. The tracking system can provide a revised return status for the last three years.