Re: Filing 2007 1040X after receiving tax refund and paying additional taxes

Posted by Gopi on October 10, 2009, 3:54 am

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> On Oct 4, 1:29 pm, Gopi wrote:

> > - Used Turbotax for 2007 taxes for federal and California taxes.

> > - Filed tax returns before Apr 15 2008.

> > - Got IRS refund for $ XXX and CA state refund for $ YYY

> > - Got a notice from IRS in May 2009 about tax underpayment

> > - I had forgotten to include my ESPP transactions.

> > - I paid additional tax payment $ AAA + interest in June 2009.

> > - After looking at tax docs, I realized that IRS did not consider cost

> > basis for ESPP and I should have raised questions in May 2009.

> > - Now I want to correct my taxes with1040Xand noticed that tax

> > refunds of XXX and YYY still remain same after adding ESPP

> > transactions. So, no additional tax payment is required.

> > - Please guide me how I should take care of all this with Turbotax and

> >1040X. I am not sure where I have to enter $ AAA. My goal is to

> > cleanup tax and get my refund for $ AAA.

> > - My understanding is that I need to send only1040Xand other tax

> > forms to both IRS and CA tax board, is that right ?

> 1. Open your original return and save a copy titled "amended." Close

> the original return.

> 2. Open the amended return and complete Schedule D. As previously

> noted, the bottom line should be zero or a small loss equal to the

> fees on your ESPP sale. The bottom line of the amended 1040 should be

> the same as your original unless the fees moved you into a lower block

> on the tax table. (Sanity checkpoint)

> 3. Complete Form1040X. For the Column A numbers, use the numbers as

> previously adjusted by the IRS. At line 6 remember to include only the

> tax, not the interest you paid. Include only the additional tax paid--

> no interest--on Line 17. Line 19 is zero since you paid an additional

> amount when the return was adjusted by the IRS. Line 22 should be

> $AAA. (Sanity check)

> 4. Print the1040Xand the Schedule D and send them to the IRS.

> 5. I don't know the specifics of the CA amended return, but the

> process should be similar.

> Phil Marti

> Clarksburg, MD

Thanks for everyone for answering my questions and giving lots of
details. I am ready with ammended tax returns. I sincerely want to
convey my thanks for all active knowledgable people who took time to
address my questions.

I have one last question about forms to be sent to IRS.

- Turbotax printed 1040x along with 1040, Schedules A, D etc. Do I
need to send all of them ? I w'd think there is no W2 with ammended
version, right ?

Regards,
-Gopi

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Posted by HLunsford on October 10, 2009, 1:05 pm

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Gopi wrote:

>> On Oct 4, 1:29 pm, Gopi wrote:

>>> - Used Turbotax for 2007 taxes for federal and California taxes.

>>> - Filed tax returns before Apr 15 2008.

>>> - Got IRS refund for $ XXX and CA state refund for $ YYY

>>> - Got a notice from IRS in May 2009 about tax underpayment

>>> - I had forgotten to include my ESPP transactions.

>>> - I paid additional tax payment $ AAA + interest in June 2009.

>>> - After looking at tax docs, I realized that IRS did not consider cost

>>> basis for ESPP and I should have raised questions in May 2009.

>>> - Now I want to correct my taxes with1040Xand noticed that tax

>>> refunds of XXX and YYY still remain same after adding ESPP

>>> transactions. So, no additional tax payment is required.

>>> - Please guide me how I should take care of all this with Turbotax and

>>> 1040X. I am not sure where I have to enter $ AAA. My goal is to

>>> cleanup tax and get my refund for $ AAA.

>>> - My understanding is that I need to send only1040Xand other tax

>>> forms to both IRS and CA tax board, is that right ?

>> 1. Open your original return and save a copy titled "amended." Close

>> the original return.

>> 2. Open the amended return and complete Schedule D. As previously

>> noted, the bottom line should be zero or a small loss equal to the

>> fees on your ESPP sale. The bottom line of the amended 1040 should be

>> the same as your original unless the fees moved you into a lower block

>> on the tax table. (Sanity checkpoint)

>> 3. Complete Form1040X. For the Column A numbers, use the numbers as

>> previously adjusted by the IRS. At line 6 remember to include only the

>> tax, not the interest you paid. Include only the additional tax paid--

>> no interest--on Line 17. Line 19 is zero since you paid an additional

>> amount when the return was adjusted by the IRS. Line 22 should be

>> $AAA. (Sanity check)

>> 4. Print the1040Xand the Schedule D and send them to the IRS.

>> 5. I don't know the specifics of the CA amended return, but the

>> process should be similar.

>> Phil Marti

>> Clarksburg, MD

> Thanks for everyone for answering my questions and giving lots of

> details. I am ready with ammended tax returns. I sincerely want to

> convey my thanks for all active knowledgable people who took time to

> address my questions.

> I have one last question about forms to be sent to IRS.

> - Turbotax printed 1040x along with 1040, Schedules A, D etc. Do I

> need to send all of them ? I w'd think there is no W2 with ammended

> version, right ?

> Regards,

> -Gopi

Select only the schedules and/or forms that show changed figures.
Do not include pages 1 and 2 of the 1040.

ChEAr$,
Harlan Lunsford, EA n LA

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>