Several years ago, the National Society of Accountants came out with its top 10 list of the reasons why people should hire a professional tax preparer instead of preparing their own returns. The number one reason? A tax professional can find significant deductions or tax credits a taxpayer may have missed.
Since the IRS provides taxpayers up to three years to file amended returns, offering to take a look at a new client’s prior returns, and possibly completing an amended return as a “second look” service, is a great way to expand your business, bring in new customers and build customer loyalty.
If you’re concerned about the time that it takes to enter the 1040x in Intuit® ProConnect™ ProSeries®, don’t worry! Here are nine steps to complete an amended return in ProSeries with only the paper copy:
- Open a new return.
- Enter the taxpayer and (or) spouse information on the Federal Information Worksheet.
- Select “Forms” from the “Forms” dropdown menu.
- Type “X” and press “enter” to open Form 1040X.
- Enter the correct calendar year for Form 1040X.
- Complete the necessary fields on Form 1040X.
- Enter the amounts originally reported for the chosen year in “Column A.”
- Enter the correct amount in “Column C” or on the associated worksheets.
- ProSeries will compute the amount for “Column B.”
Keep in mind that you can use the refund monitor feature to review the amended refund/federal tax due. Complete the remaining sections as needed and print out the return, but do not forget to complete the “Explanation of Changes.”
Editor’s note: For more information about how to amend returns, read “How to Navigate Amending Returns for Your Client” and “Correcting Mistakes and Submitting Amended Returns” on the Tax Pro Center.