Oh, by the way...........

Technical topics regarding tax preparation.
#1
taxcpa  
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716
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29-Apr-2014 6:47am
Location:
USA
Clients return was completed a week ago, with a balance due.

When prompted to return the efile authorizations, the client responded with "by the way, I forgot to tell you about $2,500 of new equipment I purchased". Easy enough to fix the return as it hasn't been filed.

Issue is that the client has already sent in the 1040V with their check. The revised return will show about $400 less tax, which means they have overpaid.

Question is how to show the 1040V payment on the return, if at all. Its not an estimated payment, so that doesn't fit. We are not filing 1040X, but an original return. Can we rely on the IRS to realize there is an overpayment and return it at some point? Or, should the refund be pursued through other means?

As an alternative, should the original return be filed and followed by 1040X to correct and claim the refund?
 

#2
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21-Apr-2014 11:29am
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California
Can we rely on the IRS to realize there is an overpayment and return it at some point?


Yes
 

#3
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Location:
Northern MI and Coastal SC
Don't report the 1040V payment. The IRS will sort it out. Believe it or not, they do not like holding onto someone's money for a standard tax return. I would not bother with an amended return, not worth the hassle, especially $400 overpyament.
 


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