Five More Tips For Amending Tax Returns
6. Amend each year separately. If you are amending more than one tax return, prepare a separate Form 1040X for each.
7. Amended returns are more likely to be audited. Few tax returns are actually audited, but tax lawyers must advise clients based on the assumption every tax return will be examined.
8. Refunds can be applied to estimated taxes. If you file an amended return asking for considerable money back, the IRS may review the situation even more carefully.
9. Beware special statute of limitations rules. Normally the IRS has three years to audit a tax return.
10. Don’t forget interest and penalties. If your amended return shows you owe more tax than you originally reported and paid, you’ll owe additional interest and probably penalties. Interest is charged on any tax not paid by the due date of the original return, without regard to extensions.