Amending question

Technical topics regarding tax preparation.
#1
Posts:
637
Joined:
23-Apr-2014 12:01pm
Location:
san diego ca
I need to amend a return to change a passive capital loss to a regular capital loss. It will result in an additional refund of $4000 or so.

As a result of the change, other passive losses are released, etc. A rather complicated chain of events to get to the new result. I am tempted to just explain the change of this capital loss, and let it go at that, and see if the IRS will accept it. If they want more explanation, I can give it to them later. Or should I try to compile a very time consuming explanation now.

And comments or suggestions?
 

#2
EADave  
Posts:
1427
Joined:
22-Apr-2014 9:25pm
Location:
Texas
I would, at a minimum, include the 8582 and if it is a return like I just Amended where an omitted K1 producing a passive loss offset existing passive gains, you will want to include the software’s worksheets that reflect a roadmap of what happened.

I will admit, this is the toughest area of tax law to explain to IRS (other than overpayment of RRTier 1 and SS from two different jobs).

Always overshare with an amended return to avoid the dreaded response, “we require more information for your claim regarding line XYZ...”
 


Return to Taxation



Who is online

Users browsing this forum: dianaf and 95 guests