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Robin D.
Robin D., Senior Tax Advisor 4
Category: Tax
Satisfied Customers: 13574
Experience:  15years with H & R Block. Divisional leader, Instructor
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Please explain me instructions for Form 1040X Amended Tax Return.

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Please explain me instructions for Form 1040X Amended Tax Return. For how many years does IRS accept 1040X ? As I understand it's for Three Years for REFUND. But what about case when did not report cash earnings? In 2012 1040X was made for 2008.

Robin D. :

Hello and thanks for trusting me to help you today. I am a tax adviser with over 15 years of experience.
If a taxpayer did not report earnings then they should file the 1040X because depending on the amount they omitted, the statute for the IRS to go back and reassess can be longer than the general 3 years. If you omit more than 25% of your income, the IRS has six years to reassess.

Robin D. :

If the amount you did not report was 25% of the income for 2008, then the IRS could look to reassessing that tax before 2015.

Robin D. :

They will require interest from the date the original return was due. If there are penalties, you could always request abatement if you can show reasonable cause as to why the income was not reported with the original return.

Robin D. :

My goal is to give you excellent service. If you are satisfied, please rate me. If you have follow-up questions on this same topic, use the reply box below. To start a new conversation with me on a new topic request me again.


 

Customer:

Ok. everything was paid but IRS did not accept changes for Social Security purpose. Is it correct?

Customer:

Sorry I'll back later

Robin D. :

You mean they would not increase the payment to the SS account. The SSA has rules that cover how far back they will correct records/

Robin D. :

There's a time limit for reporting Social Security earnings and getting credits towards future Social Security benefits. The time period is 3 years, 3 months, and 15 days following the end of the calendar year in which you earn the income. As long as your Social Security earnings are reported within this time period, you'll get credit towards future Social Security benefits.

Customer:

Thank you very much. May I only ask where said about 1040X ( 6 years for 25%)

Robin D. :

Certainly, IRC Section 6501(e)(1))

Robin D. :

That section deals with the time allowed for assessing returns if 25% of income is omitted

Robin D. :

I hope that covers you initial post and the follow ups

Robin D. :

My goal is to give you excellent service. If you are satisfied, please rate me. If you have follow-up questions on this same topic, use the reply box below.

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