Re-Filing Online

Today TaxMama hears from Farouq with a problem. “Recently my company informed many of us that they had calculated our use of company car incorrectly and sent some of us a check for the difference. They informed us that we would need to re-file our 2006 income tax with IRS with this new information. I had filed my taxes online and wanted to know what forms I need to fill out and how long I have to resubmit these changes to my 2006 tax return? If I wanted to resubmit my changes online; is it possible to do so? “

Dear Farouq,

Let’s take one thing at a time. You’re a cash-basis taxpayer. Just because your employer made this error on their books last year doesn’t mean it affects you last year. You received the money this year. Theoretically, that income should be reported this year. Personally, that’s what I would do.

Do you have a file for 2007 income? If not set one up and put a copy of that check into it. Remember to include it next year.

As to filing an amended return online? Well, it can’t be done. At least not yet. But it is coming. Later this year, or early next year, we’ll be able to file prior year returns and amended returns online.

How long do you have to file an amended return, if your company issues amended 1099s for 2006?
You have until 3 years after your tax return was filed.

And, last, but not least , what forms do you use? The amended return is Form 1040x. You will need to re-do the original return. Then print out Form 1040, Schedule A and Form 2106 and attach them to the amended return, along with a copy of the original return. You’ll find instructions here:
http://www.taxmama.com/AskTaxMama/132/oops.html

And remember, you’ll find answers to lots of online filing, amended returns and other tax information, free. Where? At TaxMama.com

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