How Long Do Amended Tax Returns Take?

The short answer is: Amended tax returns (Form 1040-X) typically take between 16 and 20 weeks to process. However, that’s just a starting point. The IRS processes amended returns manually, so several factors can impact this timeline, potentially causing delays. Let’s dive deeper into the nuances of this process.

Understanding the Amended Tax Return Timeline

The IRS doesn’t process amended returns with the same lightning speed as electronically filed original returns. Why? Because they require a human touch. Each amended return is reviewed by an IRS employee, which inevitably takes more time. The timeframe of 16 to 20 weeks is an estimate, and real-world processing times can vary considerably. Before the Pandemic the average was closer to 8-12 weeks. Now it is nearly double.

Several factors can extend this waiting period. A complex amendment, involving multiple schedules or significant income adjustments, will take longer to review. Errors on the amended return itself can also cause delays, as the IRS will need to investigate and potentially request further information. An incomplete form is just as bad as an incorrect form. The volume of amended returns the IRS is processing at any given time also plays a significant role. During peak tax season or periods of major tax law changes, processing times often increase.

Why Amended Returns Take So Long: Peeling Back the Layers

To understand the extended processing times, we need to appreciate the mechanics behind the scenes at the IRS. It’s not as simple as hitting a button.

Manual Processing

Unlike electronically filed original returns, which are largely processed by automated systems, amended returns are processed manually. An IRS employee must pull your original return, review your amended return, compare the two, and determine if the changes are justified and accurate. This hands-on approach is time-consuming.

The Paper Chase

While the IRS is striving for digitalization, many amended returns are still filed on paper. This means your return joins a physical queue of documents awaiting review. Paper processing is inherently slower and more susceptible to delays than electronic processing.

Complexity Reigns

The more complex your amended return, the longer it will take. Amending multiple schedules (like Schedule C for self-employment income or Schedule D for capital gains) or correcting substantial errors requires more scrutiny from the IRS.

Staffing and Resources

The IRS, like any government agency, operates within resource constraints. Staffing levels, budget allocations, and the overall workload significantly impact processing times. During periods of high demand, backlogs can form, further delaying the processing of amended returns.

Security Measures

The IRS implements stringent security measures to prevent fraud and identity theft. These measures, while essential for protecting taxpayer data, can add time to the processing of amended returns.

Tracking Your Amended Tax Return: Your Best Friend

Fortunately, the IRS provides a tool for tracking the status of your amended return: “Where’s My Amended Return?” This online tool, accessible on the IRS website, allows you to check the progress of your amended return. You will generally need your social security number, date of birth, and zip code to get an update.

However, keep in mind that the information displayed may not always be real-time. It often lags behind the actual processing stage. Don’t be alarmed if the status remains unchanged for several weeks. It’s still important to check regularly for any updates or requests from the IRS. It is generally accepted that there will not be an update until about 3 weeks after you mail in your amended return.

Beyond “Where’s My Amended Return?”: Other Options

While the “Where’s My Amended Return?” tool is the primary resource, you have other options for inquiring about your amended return if you’re experiencing significant delays.

• Contacting the IRS directly: You can call the IRS customer service line, but be prepared for long wait times. Have your tax information readily available.
• Taxpayer Advocate Service (TAS): If you’re experiencing a significant hardship due to the delay, the TAS can provide assistance. The TAS is an independent organization within the IRS that helps taxpayers resolve problems with the IRS.

Proactive Steps to Expedite Processing (Maybe!)

While you can’t magically speed up the IRS, you can take steps to avoid unnecessary delays.

• File electronically: While amended returns cannot be e-filed in many cases, ensuring your original return is e-filed minimizes initial errors and streamlines the overall process. This may save you from amending later on.
• Complete the form accurately: Double-check all information on Form 1040-X before submitting it. Ensure all necessary schedules and supporting documentation are included.
• Provide clear explanations: Clearly explain the reasons for the amendment and provide supporting documentation to substantiate the changes.
• Respond promptly to IRS requests: If the IRS requests additional information, respond promptly and thoroughly.

When to Amend: A Word of Caution

Before filing an amended return, carefully consider whether it’s truly necessary. Minor errors that don’t significantly impact your tax liability may not warrant an amendment. Amending a return opens it up to further scrutiny, so weigh the potential benefits against the potential risks and delays. If you are getting a refund, expect the refund to come much slower, as amending the return means the old refund is cancelled and a new refund is prepared.

Frequently Asked Questions (FAQs) About Amended Tax Returns

Here are some frequently asked questions about amended tax returns to provide you with additional clarity and guidance:

FAQ 1: Can I e-file an amended tax return?

Generally, no, you cannot e-file an amended tax return. The IRS usually requires that you mail in a paper copy of Form 1040-X, Amended U.S. Individual Income Tax Return.

FAQ 2: What form do I use to amend my tax return?

You must use Form 1040-X, Amended U.S. Individual Income Tax Return. You can download this form from the IRS website.

FAQ 3: How long do I have to amend a tax return?

You generally have three years from the date you filed your original return or two years from the date you paid the tax, whichever is later, to file an amended return to claim a refund.

FAQ 4: What happens if I don’t amend my tax return when I should?

If you fail to amend a tax return when required (e.g., due to a significant error or omission), you could face penalties and interest from the IRS.

FAQ 5: Should I pay the additional tax owed before filing the amended return?

Yes, it’s generally recommended to pay any additional tax owed as soon as possible to minimize penalties and interest. You can pay online, by mail, or through electronic funds withdrawal.

FAQ 6: How do I know if my amended return has been processed?

You can use the “Where’s My Amended Return?” tool on the IRS website to track the status of your return.

FAQ 7: What if the IRS disagrees with my amended return?

If the IRS disagrees with your amended return, they will send you a notice explaining their reasons. You will have the opportunity to dispute their findings by providing additional information or filing an appeal.

FAQ 8: Will amending my return trigger an audit?

Amending your return can increase the likelihood of an audit, as it signals to the IRS that there were errors or discrepancies on your original return. However, it doesn’t automatically trigger an audit.

FAQ 9: Can I amend my state tax return at the same time?

Yes, you should generally amend your state tax return if you’ve amended your federal tax return, especially if the changes affect your state tax liability. Contact your state’s tax agency for specific instructions and forms.

FAQ 10: What if I move after filing my amended return?

Notify the IRS of your new address to ensure you receive any correspondence regarding your amended return. You can do this by filing Form 8822, Change of Address.

FAQ 11: I filed jointly, but now divorced. Can I amend this return?

Yes, you can still amend a return that was filed jointly. However, both you and your former spouse will likely need to sign the amended return. Contact the IRS or a tax professional for specific guidance on these situations.

FAQ 12: Is there a way to expedite the amended return process?

Unfortunately, there’s no guaranteed way to expedite the processing of an amended return. However, filing accurately, providing complete documentation, and responding promptly to IRS requests can help minimize delays.

Navigating amended tax returns can be a complex and time-consuming process. By understanding the factors that influence processing times and taking proactive steps to avoid delays, you can minimize the frustration and ensure a smoother experience. And remember, when in doubt, consult with a qualified tax professional for personalized guidance.