Amended Return Not Processed? Take Action to Resolve It
Learn how to address issues with unprocessed amended returns, from documentation errors to identity verification, and take steps to resolve them effectively.
Filing an amended tax return can be a necessary step to correct errors or update information, but the process can sometimes stall, leading to frustration. Delays in processing can result in significant financial implications, such as delayed refunds or unresolved tax obligations, making it essential to address issues promptly.
Understanding the reasons behind the delay is crucial for resolving the situation. Several factors, including documentation errors and identity verification problems, may be responsible.
Incomplete or Incorrect Documentation
Processing delays often result from incomplete or incorrect documentation. Taxpayers may neglect to attach required forms and schedules, such as Schedule A for itemized deductions when claiming additional deductions. Missing these documents can cause tax authorities to set aside the return for further review.
Accuracy is equally important. Errors in calculations or discrepancies between reported income and supporting documents, like W-2s or 1099s, can raise red flags and lead to delays. Double-checking all entries and ensuring figures match supporting documents before submission is essential to avoid these problems.
Outstanding Unpaid Liabilities
Unpaid tax liabilities can also delay the processing of amended returns. Tax authorities may prioritize resolving existing debts before addressing amendments. For example, if a taxpayer owes back taxes, penalties, or interest, the IRS may hold the amended return until these obligations are resolved. Refunds from the amended return are often applied to outstanding balances under the Internal Revenue Code Section 6402.
Taxpayers should review their tax account statements, available through the IRS online portal, to identify any outstanding amounts. Resolving liabilities, whether through a payment plan or full settlement, can help expedite the processing of the amended return.
Identity Verification Problems
Identity verification issues are another common cause of delays. Mismatched information, such as discrepancies between the name or Social Security number on the return and records held by the Social Security Administration, can trigger manual reviews.
To address this, the IRS issues Identity Protection PINs (IP PINs), six-digit numbers assigned annually to verified taxpayers. Failure to include the correct IP PIN can lead to processing delays. Taxpayers can obtain an IP PIN through the IRS online portal to ensure their identity is verified and their return processed efficiently.
Contacting the Filing Authority
When an amended return is stalled, contacting the filing authority can provide clarity and help resolve underlying issues. Before reaching out, gather all relevant information, including details of the original and amended returns, any correspondence received, and identification numbers like a Social Security number or Employer Identification Number.
Taxpayers can use tools such as the IRS’s “Where’s My Amended Return?” online tracker to check the status of their return. For more complex issues, speaking directly with an IRS representative may be necessary to address specific concerns.
Additional Actions If Status Remains Unchanged
If contacting the filing authority does not resolve the issue, further steps may be required. Prolonged delays can be frustrating, but formal dispute resolution mechanisms or professional assistance can help address the problem.
Filing Form 911, Request for Taxpayer Advocate Service Assistance, is one option. The Taxpayer Advocate Service (TAS) is an independent organization within the IRS that assists taxpayers with unresolved issues or financial hardships caused by delays. For example, if a delayed refund is causing financial strain, TAS can intervene to expedite the process. Taxpayers should provide detailed documentation of their efforts to resolve the issue, including prior communications with the IRS.
Consulting a tax professional, such as a Certified Public Accountant (CPA) or an Enrolled Agent (EA), is another option. These experts can identify overlooked issues, recommend additional documentation, and represent taxpayers in communications with the IRS. Their expertise ensures that procedural requirements are met and the case is effectively presented.