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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
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Experience:  10 years experience
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Robin I did set up payments and I gave the information to my

Customer Question

Hi Robin I did set up for installment payments and I gave the information to my tax preparer to file for an amendment for the $25,000.00 that I owe, and my 2015 taxes she filed the taxes but not the amendment and the IRS took everything leaving me with $500.00 to send my daughter off to college. Is there anything that can be done at this point? Did I drop the ball or my preparer?
Submitted: 1 year ago.
Category: Tax
Expert:  emc011075 replied 1 year ago.

Hi. My name is ***** ***** I will be happy to help you.

An amended return can take 12 - 15 weeks to process. Even if she filed it with your 2015, you wouldn't get your refund right away. You can still file the amendment and get your money back. How much time you have depends for what year are you filing the amendment.

Expert:  emc011075 replied 1 year ago.

You have 3 years after the due date or 2 years after filing date, whichever is longer, to amend your return. It means, if 2014 return was due on April 15, 2015, you have until April 15, 2018 to amend it.

Expert:  emc011075 replied 1 year ago.

Any questions?

Customer: replied 1 year ago.
Expert:  emc011075 replied 1 year ago.

Ok, what's your question?

Customer: replied 1 year ago.
Do you think it is possible to get money back from that?
Expert:  emc011075 replied 1 year ago.

From amending a return?

Customer: replied 1 year ago.
because the tax preparer told me I may not get anything back
Expert:  emc011075 replied 1 year ago.

Well, it depends why are you amending your return. There are thousand reasons why people want to or have to amend their tax return. If you have a legitimate correction that would reduce or eliminate your tax I don't see reason why not to amend it.

Customer: replied 1 year ago.
Right I got a settlement and I didn't report it
Expert:  emc011075 replied 1 year ago.

Why she is saying you wouldn't get anything back? What's your reason for amendment?

Customer: replied 1 year ago.
She said sometimes people don't get anything back. And I got $25,000. Settlement and it put me in another tax bracket
Expert:  emc011075 replied 1 year ago.

Reporting a settlement will not reduce your taxes, it may actually increase it since most settlements are considered a taxable income. And if you have 25,000 of unreported income it is just another reason to file an amendment. If IRS finds out, you will be charged with underreporting penalty.

Customer: replied 1 year ago.
Okay thank you so much
Expert:  emc011075 replied 1 year ago.

Why would you assume that amending your return and reporting additional income will give you a refund? Just curious?

Customer: replied 1 year ago.
Because that is what my tax preparer told me. And the IRS took everything I owe nothing.
Expert:  emc011075 replied 1 year ago.

I cannot think of a reason why reporting 25K settlement would result in a refund but it doesn't mean it is not possible. But if you didn't report the income you really should amend it. Ask the preparer to explain to you how reporting 25k settlement would increase your refund.