• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Filing tax amendment 1040x

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

sbali

New member
Recently received notice from IRS that we have missing income from Securities on 2017 tax return. Contacted tax preparer and provided Fidelity stocks statement. They then produced forms 1040x and X (for CA State) along with amended 1040 and 540. Do I still need to respond to IRS letter to indicate that I disagree with the proposed changes and provide explanation? My tax preparer is telling me that I don’t need to respond to the notice and to basically just send the amended tax returns and forms including Fidelity statement directly to IRS. Is this correct? Shouldn’t I do both? I’m anxious about not responding to the actual notice.
 


Taxing Matters

Overtaxed Member
My tax preparer is telling me that I don’t need to respond to the notice and to basically just send the amended tax returns and forms including Fidelity statement directly to IRS. Is this correct? Shouldn’t I do both? I’m anxious about not responding to the actual notice.
The unit at the Service Center (SC) that sent out the letter will be expecting a reply, so I disagree with your tax preparer. (By the way, not all tax preparers have much experience dealing with post filing matters, and that may be the case here). I would not send the amended federal return like you would if you were amending it unprompted by the IRS. Rather, I would send a them back to the unit that sent you the letter along with (1) a cover letter explaining that you disagree with the changes, briefly describe why you disagree and state that the details are in the amended return that is included, and right under the cover letter include a copy of the letter you received from the IRS, which will help the SC match it to the case it has. Make sure the letter also has your name, address, and SSN on it near the top and reference the tax year involved. I suggest you send it certified mail and keep a copy of everything you sent. Do not send two sets of amended returns to the IRS on this; that is more likely to cause you trouble and won't help anything.

The state, on the other hand, will not yet have received any data from the IRS on the adjustment and is unlikely to have started anything on this. As a result, that amended return you could simply mail in like any other amended return.
 

LdiJ

Senior Member
Recently received notice from IRS that we have missing income from Securities on 2017 tax return. Contacted tax preparer and provided Fidelity stocks statement. They then produced forms 1040x and X (for CA State) along with amended 1040 and 540. Do I still need to respond to IRS letter to indicate that I disagree with the proposed changes and provide explanation? My tax preparer is telling me that I don’t need to respond to the notice and to basically just send the amended tax returns and forms including Fidelity statement directly to IRS. Is this correct? Shouldn’t I do both? I’m anxious about not responding to the actual notice.
One thing that the IRS says in the CP-2000 letter is to NOT respond with an amended return. You can use an amended return for informational purposes to demonstrate your figures, but filing an amended return is generally not appropriate.

What I include with a CP-2000 letter is a copy of the CP-2000 letter, the amended return (unsigned) and a letter of explanation detailing what I do or do not agree with on the CP-2000 letter. If by chance, the amended return agrees with the CP-2000 letter then I don't send in the amended return at all, I simply send back the form included with the CP-2000 letter where you indicate that you agree with the proposed changes.
 

Taxing Matters

Overtaxed Member
One thing that the IRS says in the CP-2000 letter is to NOT respond with an amended return.
That is part what makes me think the tax preparer the OP consulted isn't experienced in post filing matters or he/she would have known this. Apart from that, it appears we both responded at about the same time, I just hit reply a little faster. :LOL:
 

LdiJ

Senior Member
That is part what makes me think the tax preparer the OP consulted isn't experienced in post filing matters or he/she would have known this. Apart from that, it appears we both responded at about the same time, I just hit reply a little faster. :LOL:
Our responses were remarkably similar...LOL
 

davew9128

Junior Member
I do the same as LdiJ and agree with Taxing Matters. Now the preparer may be inexperienced at this sort of thing or may be really old school about it and not up on current procedure. Either way though, sending in an amended return will CREATE A MESS.
 

sbali

New member
I do the same as LdiJ and agree with Taxing Matters. Now the preparer may be inexperienced at this sort of thing or may be really old school about it and not up on current procedure. Either way though, sending in an amended return will CREATE A MESS.
Thank you all for taking the time! Very helpful, I appreciate it!
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top