₪₪₪ I need to know some details about making amended tax returns?
To make the story shorter and simpler than it is, I figured out my taxes for the 1040 (federal) and IT-201(state) forms. I saw that I owed a good amount of money especially regarding the 1040. I always know that I probably had made small mistakes, but I try to send the forms in well before the deadline. I sent out the forms in February which is well before April 15. I also had sent an initial payment of $50 for both state and federal forms with an explanation that I would have to pay the rest of the money incrementally.
Later on when I looked over my tax paperwork again, I realized that I made greater errors than I originally thought, but I guessed that the tax departments will just make corrections and let me know what I did wrong.
After a while I received a notice regarding the IT-201. It looked like I owed more than I thought I did. I called the department and arranged for incremental payments since I could not pay it all at once. The amount was a bit over $2,000. The agent I spoke to said that he would arrange for a certain amount to be taken out of my bank account every month until the debt is paid. He told me that according to what he sees on his computer, it is possible that I could even owe much less than what it says on the notice I was sent, and I could try to do an amended return. He said that the IRS did not really correct any incorrect amount of money that I reported to them, and that he sees that money that is listed on my W-2 and 1099-MISC do not add up to the high amount of money that I reported but is much less, and that the IRS did not argue the point regarding the fact that I reported that I made more money than I actually did. They only did the correct tax procedures in using the amounts. I told him that I will consider amending the paperwork, though I was not sure I would recalculate the whole thing, but since I didn’t want to call again and go through the process of pressing the touch tone pad for different issues and the entire hassle, I will just arrange for the payments of $41 a month to be taken out of my bank account. This way I cannot be said to be delinquent in arranging to pay the IRS. The agent made the arrangements and told me that beginning April, the payments will be taken out of my account.
Later on I did recalculate the IT -201 and found that the agent was right. I found that I actually miscalculated greatly on the amounts of money I earned, as well as put the wrong entries on the wrong areas of the form, and I found that I did not owe anything to the IRS but they owed me, (not much, but they owed me).
I also recalculated the 1040 which as of this writing I had not yet gotten word about the accuracy of the original one I sent in, but I also found that my original calculations were not correct and I owe a much decreased amount of money
.
As of this writing, I am preparing to send an amended return regarding the IT-201.
My questions:
Now that I already arranged to have monthly payments deducted from my bank account, will the amended IT-201-X automatically stop the deductions if the IRS agrees that I don’t owe them anything, or will the deductions automatically be adjusted to a lower amount if the IRS finds that I owe them much less than $2,000, or do I have to make special arrangements to un-do the incremental payments that I originally arrange for?
Will the IRS give me back any payments that they might have already taken out of my bank account (along with the initial payment of $50 that I sent in) by the time they figure out that I don’t owe them anything. Or will they send me back any excess money that they took from me if they find that I already paid more than what I owe them?
Also
I had not yet sent the amended 1040. When I do, it should reach the tax department before April 15. Will the amended 1040 take priority over the original 1040, or will I be sent a bill for the false debt that I originally calculated before I am told that I owe much less?
Please don’t tell me that next time I have to be more careful, I know that.
BTW- I might have made errors on past years tax paperwork. Is it possible to do any amendenments for several years back?
Thanks for any information from tax savvy people
Category: IRS Problems
