Have you decided that you need to modify your amended tax return? This is the process to make sure you present the correct statement and how to complete the amended return.
You do not need to file an amended tax return for mathematical errors or if you forgot a form. The IRS will handle the mathematical errors and ask for the form.
For more information about the deadline to file your amended business return and where to send your return, see this article with answers to questions about how to file an amended tax return, including when and how to file it.
How to modify a commercial tax declaration
The procedure for filing an amended tax return depends on your type of business:
Sole proprietorship or sole partner LLC
To obtain a single owner or single-member LLC that submits Form 1040X. Because you filed your business taxes on Schedule C along with your personal tax return, Form 1040X works for both. A change in Schedule C will affect the remainder of your tax return, possibly including the amount of your self-employment tax.
This is how a change in Schedule C on your Form 1040X is reflected:
- First, make the change in Schedule C and prepare a corrected copy.
- The amount of the change must be reflected in Line 31 – Net gain or loss.
- If your business had a change in earnings, you must also complete a new SE Schedule for the change in the self-employment tax. This new amount is entered in Line 27 of Form 1040.
- Both changes will change Adjusted Gross Income on your Form 1040.
- This modified amount is included in Line 1 – Adjusted gross income – on Form 1040X. It must include the original amount, the change and the new amount.
- Then you must change all the resulting calculations on your tax return.
- Be sure to attach a copy of the amended Schedule C when filing the amended return.
William Perez, a tax planning expert, has a guide to submit Form 1040X for an amended tax return.
To amend tax returns for other business forms, it is best to use a qualified tax preparer, since these forms are complex. Continue to check this article: 10 Unnecessary expenses when creating your company
Modification of a Corporation or S Corporation Return
- To modify a tax return for a corporation, file form 1120x.
- To modify the taxes of an S corporation, create a copy of the original return (on Form the 1120S) and checkbox H-4 (Modified Statement) on the copy. Then use the copy to make the changes to the statement and re-file.
If the change results in a change to shareholder information, you must also submit an amended Schedule K-1 and deliver a copy of the amended K-1 to the shareholder. Make a copy of the original K-1 and check the correct box to indicate that it is a modified K-1. Then make the necessary changes.
Modification of a Multi-Member Company or LLC Return
To amend a multi-member company or LLC return, make a copy of the company return Form 1065 and check box G (5) on page 1. Attach a statement that identifies the line number of each modified item, the corrected quantity or treatment of the article, and an explanation of the reasons for each change.
If Annex K-1 in the association statement / LLC is incorrect, or if the change to 1065 causes a change in the information in K-1, prepare a modified K-1.
Check the “Amended K-1” box at the top of Annex K-1 to indicate that it has been modified. Then, give the modified Annex K-1 to the member/member.
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