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IRS Allows Electronic Filing of Form 1040-X

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The Internal Revenue Service said Monday that taxpayers can now submit Form 1040-X electronically with commercial tax-filing software — allowing taxpayers to electronically correct previously filed tax returns while minimizing errors.

“Amended returns can finally be filed electronically!!!” Jeff Levine, director of Advanced Planning at Buckingham Wealth Partners, shouted in a Monday tweet, adding that CPAs are likely “crying tears of joy.”

The 1040-X — the Amended U.S. Individual Income Tax Return — has been one of the last major individual tax forms that needed to be paper filed, the IRS said.

For the initial phase, only tax year 2019 Forms 1040 and 1040-SR returns can be amended electronically. Additional improvements are planned for the future.

About 3 million Forms 1040-X are filed by taxpayers each year.

“The ability to file the Form 1040-X electronically has been an important long-term goal of the IRS e-file initiative for many years,” said Sunita Lough, IRS Deputy Commissioner for Services and Enforcement, in a statement.

“Given the details needed on the form, there have been numerous challenges to add this form to the e-file family. Our IT and business operation teams worked hard with the nation’s tax industry to make this change possible,” Lough stated, adding that the change also “streamlines work for the IRS and the entire tax community.”

Before the change, taxpayers had to mail a completed Form 1040-X to the IRS for processing.

The new electronic option allows the IRS to receive amended returns faster while minimizing errors normally associated with manually completing the form.

The tax-filing software allows users to input their data in a question-answer format, simplifying the process for them. It also makes it easier for IRS employees to answer taxpayer questions since the data is entered electronically and submitted to the agency almost simultaneously, the IRS said.

Taxpayers 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, the IRS states.

Those filing their Form 1040-X electronically and on paper can use the ”Where’s My Amended Return?” online tool to check the status of their amended return.

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