How to Deal With a Rejected Amended Tax Return
You’ve gone to all the trouble of amending your return, only to have the IRS reject your amended tax return. What do you do now? While the process of figuring what went wrong isn’t always easy, it boils down to a few simple steps.
1. Understand and investigate why the IRS rejected your amended return.
Many times, you’ll need to directly contact the IRS. Start with the phone number listed on your last notice. Understanding why your tax return was rejected is easier if you know how the IRS talks about the details of your account. A tax pro can help you navigate this step.
You might need to request your IRS transcripts to get more details. IRS transcripts don’t show all the activity on your IRS account, so you might have to ask more questions. For example, your transcript won’t tell you exactly why the IRS made changes to a filed return, or why the IRS rejected your amended return. But the transcript might help you piece together the details to better understand the point of view of the IRS or what the IRS did wrong.
Interpreting transcripts can be difficult, so you might want to consult a tax expert.
2. Understand your options and take the next step.
If you think the IRS denial is correct, you don’t have to do anything else. But if you think the IRS unfairly rejected your tax return, you might have several options.
If the IRS rejected the amended tax return because of a procedural error (usually with IRS letter 916C), it might be as simple as refiling the amended return, providing proof of an item on your return, or filing an additional form.
If it’s more complicated, like a formal denial (usually with IRS letter 105C or 106C), you might consider appealing your case.
You might have other issues that you need to address. For example, if the IRS has denied your amended return because of a past audit, you might need to ask for audit reconsideration to try to reverse the audit results.
If you disagree with the IRS, you’ll need to start by filing a petition about your rejected tax return with the IRS Office of Appeals.
- For amounts less than $25,000, use IRS Form 12203.
- For higher amounts, create your own petition that includes the facts, law, argument, and your position.
You should file the petition within 30 days of the denial letter. But because this process is more informal, the IRS often allows appeals after the 30-day deadline.
3. Follow the process to appeals (if applicable).
Appealing an amended return works a lot like audit appeals, where you state your facts and legal argument to support your position. The appeal will likely happen by phone and may involve more than one meeting with the appeals officer. During this process, you may need to research tax law or procedures to support your point of view about the denial, provide more information, and argue the merits of your case.
An IRS appeals officer will review your request and make a decision. The appeals officer will agree, disagree, or partially agree, and will explain their decision to you. You can accept the decision or take the matter further to the courts.
If you’re appealing within the courts, consider hiring an attorney. Court procedures about why the IRS rejected your amended return are much more formal than IRS appeals and usually require the experience of an attorney.
How to Get Expert Help When Your Tax Return is Rejected
If you disagree with the IRS decision on your amended return, your H&R Block tax professional can help you investigate what to do next. Your tax pro can also communicate with the IRS for you to get the problem fixed. They can help with cases as simple as providing some documents or as complicated as appealing an IRS decision.
You can make an appointment for a free consultation with a local tax pro by calling 855-536-6504.
Bring these five items to your appointment:
- A copy of any notices related to your tax situation
- A copy of your original tax return and amended return for the year(s) in question
- If you haven’t filed the amended return yet, bring all the information related to the changes needed to your original tax return.
- Any account transcripts you’ve requested. If you don’t have your transcripts, your tax professional can get them for you.
- A copy of any responses or petitions you’ve sent to the IRS
What triggers the IRS to audit a tax return? Learn how common tax mistakes and errors can be a red flag and affect your chances of being audited by the IRS.
Find the current percentages for federal income tax rates, capital gains tax rates, Social Security tax rates and more from the tax experts at H&R Block.
The key to understanding your w-2 form is decoding the boxes and numbers. Learn how to read your w-2 form with this box-by-box infographic from H&R Block.
The tax experts at H&R Block outline how students and parents can file Form 8863 and document qualified expenses. Read about Form 8863 here.