Filing tax returns is a necessary part of every business. Another important part of managing the tax liability for your business is knowing when you need to file an amended tax return. Amending a corporate tax return is a process that can help or hurt a business depending on the information used when making changes to an old return. If you require assistance determining the appropriate scenario to amend your corporate tax returns, you should consult with an experienced Roseville corporate tax return accountant.
At Cook CPA Group, our accounting team is dedicated to providing your business with the service that it deserves. Our firm is prepared to handle the challenges of interpreting and applying complex tax laws to your unique tax situation so that you can continue to focus on your business.
How to File an Amended Corporate Return
Making an error when filing a corporate tax return is a common occurrence. Some taxpayers may notice their mistake in time to correct it while others may only notice after a significant amount of time has passed. Even though you may have made a mistake when filing your return, that does not mean that you must file an amended return.
According to the Internal Revenue Service, a taxpayer does not have to file an amended return for simple math or clerical errors. Additionally, if you failed to file a particular form, the IRS will likely make contact so that you can provide them with more information.
There are also many reasons to file an amended business return. For example, if you did not accurately report your income or you missed out on tax credits that you earned, you should consider fixing your return. If a corporate tax return was filed and the filer was aware that information was missing from the return, this could open the business up to tax penalties and other consequences.
When filing an amended corporate return, you must ensure that you file the correct form depending on the type of corporation that you operate. For example, C corporations will typically file their taxes using Form 1120. If you have to file an amendment to a tax return for a C corporation, you must use Form 1120x.
It is important to note that you cannot file an amended return until the original return has been filed. If you believe you missed out on a tax refund or credit, an amended corporate return must be filed within three years of the date of the original corporate return.
If you are filing an amended return for an S corporation, you must use Form 1120s. Similar to C corporations, if you did not claim a tax refund or credit on an original return, you must amend the return within three years. If you paid the tax bill associated with your original filing, you must file your amended return within two years of that date.
To learn more about filing an amended corporate return, you should continue reading and speak with an experienced California tax accountant.
Tax Tips for Filing an Amended Return
One of the most important pieces of information you should know about amending tax returns is that you are not legally required to file an amended return. As mentioned, if you made a serious mistake regarding the reporting of your income, you should consider filing an amendment. However, if the IRS can easily discover the error, there may not be a need to file an amended return at all.
Another important rule of filing an amended tax return is that you must correct all mistakes made in the original filing. This means that you cannot only choose to correct information that will benefit your business. For example, if you discover that you did not claim a tax credit and that you underreported your income, you cannot choose only to correct the information that will result in a tax credit.
It is also important to note that amended tax returns will be under heavy scrutiny. This means you should be sure that all information is correct or you risk being audited or receiving a large tax bill.
Our Sacramento Tax Return Amendment Accountants are Ready to Work with You
If you need help amending your corporate tax returns, you should contact an experienced Sacramento tax return amendment accountant. The accounting team at Cook CPA Group possesses decades of combined accounting experience that we would be proud to utilize to serve you.