Tax Mistake - Discovered AFTER Submitting

[CaptTom]

Using the IRS on-line "Fillable Forms" I completed and submitted my federal return. I got the e-mail saying it was "accepted." Glad to have that over with!

Then I started my state return. That's when I found that my state withholding didn't match my own records.

Oops. One place sent me two 1099-R's in the same pdf file. I'd missed the second one. So I have unreported income and withholding.

Obviously I need to file an amended return. I don't see any way to cancel the federal form I submitted. It doesn't look like I can submit the amended return until the first one is processed. And I can't do the state return without the values from my federal return.

Maybe they'll process the federal return before April 15th and I'll be able to file the amended form then. Or maybe the IRS will catch the mistake, but I think they only do that long after tax time. I know they found a small omission years later on one of my returns once.

Any other suggestions?

 

[Montecfo]

Why can't you submit an amended return?

Is it net tax due or refund?

Also, good idea to complete all returns, wait 24 hours, final review and submit.

 

[Mark1]

Can't you just wait for the first one to be processed? I submitted my "Fillable Forms" on 1/30 and had my refund in my checking account by 2/6. Or, can you maybe just start another Fillable Form filling for a "John Doe", without submitting it (i.e. just complete it enough to get your final numbers to use for your state filling)?


One time the I submitted my State numbers prior to my Fillable forms being accepted and the Fed filing was rejected because it was off by a dollar due to me not rounding my numbers. I just ignored it and left the state filling wrong.

 

[cathy63]

Option 1) If you don't itemize on your Fed return, ignore the additional income for Federal and just wait for them to find it and send you a letter. Pay when you get the letter. In order to prepare your state return, you'll need to redo the Federal so you have the right starting numbers.

Option 2) Create the amended Fed return now and just don't submit it yet. This is the best option if you're itemizing and the additional state withholding will increase your deductions. The IRS won't do that part automatically for you, so you'll have to amend anyway. You can submit your state return any time, even if you haven't submitted the final Fed return yet.

Option 3) Print the amended return and mail it. I know the advice is to wait until after the first return is processed, but paper returns are so slow it really doesn't matter. The IRS will cash your check immediately if you include it with the return, but that's not the same as processing the return. You can also send the amended return without payment and pay the additional tax online any time up to April 15th.

 

[Wile E. Coyote]

Using the IRS on-line "Fillable Forms" I completed and submitted my federal return. I got the e-mail saying it was "accepted." Glad to have that over with!

Then I started my state return. That's when I found that my state withholding didn't match my own records.

Oops. One place sent me two 1099-R's in the same pdf file. I'd missed the second one. So I have unreported income and withholding.

Obviously I need to file an amended return. I don't see any way to cancel the federal form I submitted. It doesn't look like I can submit the amended return until the first one is processed. And I can't do the state return without the values from my federal return.

Maybe they'll process the federal return before April 15th and I'll be able to file the amended form then. Or maybe the IRS will catch the mistake, but I think they only do that long after tax time. I know they found a small omission years later on one of my returns once.

Any other suggestions?

How much money is it? I mean how much tax? If it is a tiny percentage of your overall amount then you can relax and file your state tax return now. Then, when all the processing is complete if you feel the amount is substantial enough then file both amended returns together (I believe TT lets you do this). In the mean time between those two points in time the IRS is not going to stop the presses to audit you.

 

[CaptTom]

Thanks for all the suggestions. This was really bothering me. Mostly because I thought I was all done, and now I have to start over, with a few extra hurtles to boot.

According to the IRS "Where's My Refund" page, My tax refund is scheduled to be sent to my bank by February 20. It's not the six day turnaround someone above experienced, but not too long to wait before I can start correcting things.

I already updated my tax spreadsheet, which is what I use to copy the numbers to the on-line forms. I plan to come back to it, maybe tomorrow, and double- and triple- check everything.

And, yes, I should have waited 24 hours and re-reviewed everything before submitting. I actually caught the error because I double-checked a total on my state return. I'm still not sure why it slipped past me on the federal form. I should have found the same discrepancy there.

I think it's because I had two values which coincidentally rounded to the same dollar amount, but were actually from different accounts. So when it was off by that amount, I assumed I'd incorrectly added it up twice when double-checking, and it would have been right on the form I was submitting.