Superseded return for an individual - Spidell

Superseded return for an individual

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Message Board Superseded return for an individual

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    • #248533
      Joy Soulier
      Participant

      Can a superseded return be filed for a year 2019 individual return to claim a deduction (unrelated to CARES) that was not claimed on the original return; now efiled and accepted.  Tax return had overpayment and taxpayer does not want to change the application of the overpayment to year 2020.  Is there a risk that a superseded return would change the application of the overpayment that was previously requested.  Is it possible to increase the overpayment as a result of the refund that will now accrue with the new return.

    • #248588
      Lynn Freer
      Participant

      No you can file a superseded return for any reason

    • #248594
      Joy Soulier
      Participant

      I have never filed a superseded return for person or an entity.  Is the IRS allowing this specifically because of the partial govt shut down and processing delays.  What is your opinion regarding the overpayment.  we don’t want that refunded.

    • #248600
      Sandy Weiner
      Participant

      No superseded returns have always been allowed.  For individuals you must file a paper superseded return (we recommend writing “Superseded return” on the top).  You will indicate on the superseded return the amount of the overpayment to you want applied to the 2020 tax year.

    • #248722
      Mark Bole
      Participant

      It’s not clear from the OP whether or not you want to change the amount of the applied overpayment.  If not, you would just want to file a routine amended return (1040X) which is something the IRS handles all the time.

    • #248747
      William Dewberry
      Participant

      Seems to me work flow and process wise its much easier to file a superceded return rather tan a 1040 X

    • #248774
      Mark Bole
      Participant

      One can find a plenitude of information from the IRS about filing individual amended returns.  But other than the IRM, can you point to anywhere that the IRS provides instructions for individuals about filing superseding 1040 returns?

      Sure, maybe it’s easier for the tax preparer to skip preparation of the 1040X, but will the IRS process it timely, smoothly, with no glitches, since it is a very rare event for them?  Will you be able to prove that it was filed timely? (hard to see how making a special trip to the post office and standing in line is “much easier”, along with keeping track of whatever type of receipt the post office provides).

      And obviously for California, efiling a 540/Schedule X is going to be much easier, faster, and more error-free than paper filing a superseding return.

      Anyway, you get the best of both worlds by filing a 1040X:

      “A. An amended (Form 1040-X) or corrected (duplicate) return filed on or before the due date or the extended due date is a superseding return.

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      B. Correspondence postmarked on or before the due date or extended due date, requesting changes to tax returns, is processed as superseding information.”

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      https://www.irs.gov/irm/part21/irm_21-006-007r#idm140053623081408

       

    • #248775
      Mark Bole
      Participant

      Put yourself in the shoes of the IRS data entry clerk.

      Scenario 1: you have a complete efiled return in your computer database.  Now someone gives you a paper copy of the same return, could easily be 20-30 pages, and says simply, “here, use this one instead”.  Now you have to play a game of cat-and-mouse and try to figure out what changed and where so you can update the system.

      Scenario 2: you have a complete efiled return in your computer database.  Now someone gives you a two-page form explaining exactly what changed, and where, e.g. “line X on Form YZ changed by this amount, which changed taxable income, new tax was calculated and here is the result”.

      On behalf of the client, I’d rather take my chances with Scenario 2.  I’ve seen even perfectly prepared amended returns get screwed up by the IRS, so I’d hate to deal with the back and forth over a screwed up superseded return.

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