OOPS! YOU JUST DISCOVERED THAT YOU FILED YOUR 2019 RETURN WITH ERRORS!
Jennifer Jones, CPA, CFE
CFO & Tax Strategist◆We Go Beyond Tax Compliance and Proactively Save Our Clients Less in Taxes ◆We're Hiring
What if, during the rush to get your 2019 Tax Returns filed, maybe for the Covid-19 Relief Applications, you discover an error or omission on the 2019 return already filed with the IRS that needs to be corrected?
Good News! It’s still before the due date. The advantage of fixing the return now, before the due date, is that the possibility of accuracy-related penalties associated with the incorrect information could be eliminated!!
YES… Superseded returns used to avoid accuracy-related penalties
Even though the IRS announced extensive filing and payment relief in Notice 2020-23 for deadlines occurring between April 1 and July 15, you might have pushed to file your returns early. This could be the case if you needed to obtain your refunds quickly or maybe because the economic impact payments were higher based on your 2019 tax returns than your 2018 tax returns.
Whatever the reason, it’s nice to know that you still have time for a ‘do-over’ before the Filing Deadline (July 15). It’s called Superseding.
Why do you care?
Because It's still before the due date. The advantage of fixing the return now, before the due date, is that the possibility of accuracy-related penalties associated with the incorrect information could be eliminated!
As a quick recap:
- An amended return is one filed after an original return and after the due date (including extensions).
- A superseding return is one filed after an original return but before the due date (including extensions).
Amended returns essentially exist along with the original return. Superseding returns, on the other hand, replace an originally filed return.