A major milestone reached for electronic returns, the Internal Revenue Service announced on May 28, 2020 that taxpayers will be able to file their Form 1040-X, Amended U.S. Individual Income Tax Return electronically later this summer.

With about 3 million Forms 1040-X filed by taxpayers each year, currently a completed Form 1040-X must be mailed to the IRS for processing with wet signatures from the taxpayers (and tax professionals if return is prepared by professional firms), which creates additional work. In order to reduce the additional steps involved in filing Form 1040-X, the IRS is allowing the use of an electronic filing option. The new electronic option allows taxpayers or tax professionals to file amended returns faster with more complete and accurate data in an easily readable format.

When the electronic filing option becomes available, only tax year 2019 Forms 1040 and 1040-SR returns can be amended electronically. Taxpayers will still have the option to submit a paper version of the Form 1040-X and should follow the instructions for preparing and submitting the paper form. Additional enhancements are planned for the future.

If you need assistance regarding this topic, please reach out to us at (469) 467-4660 or info@ahujaclark.com.