US taxes - awaiting one doc - file now and amend later?
March 6, 2019 1:08 PM   Subscribe

The situation: US tax filer, large refund due, also part owner of an LLC that is taking its time to file its taxes, and which will have a tiny profit (~$200 for my share). If I do not wait for the LLC, file my taxes now, and amend later, will fortunes shine on me or will I enter a Dante-esque hellscape of pain?

Experiences from people in similar situations (there was a hold up on a W-9, 1099, S-Corp or LLC doc and you filed and amended later) especially appreciated.
posted by zippy to Work & Money (6 answers total)
 
I think if you amend the return and get money back it is the easiest. So I would tend to over-estimate the profit to get the rest of the refund sooner and then file an amended return later in the year with actual amount and get back the relatively small amount that you overpaid. (Not an accountant, just average US taxpayer)
posted by metahawk at 1:11 PM on March 6, 2019 [2 favorites]


ps. Actually amending a return is pretty easy but you need to make sure that you paid the full tax due by April 15th or you face penalties.Avoiding penalties is why you want to make sure you want to err on the side of leaving money with IRS rather than maximizing the refund.
posted by metahawk at 1:14 PM on March 6, 2019 [2 favorites]


When you sign the IRS form 1040, your are certifying the following statement (which appears above the signature line):
"Under penalty of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete."
I wouldn't leave off the income entirely, since that would amount to knowingly submitting an incomplete return, and you would be liable for interest and penalties due to underpayment. I agree that making an inflated estimate and then filing an amended return as necessary seems like a reasonable way to proceed; but I've never actually done it myself. Honestly, it's probably worth calling the IRS about this; they're usually pretty helpful on the phone.

Also, note that the due date for K-1 forms (assuming that's what you're referring to) was shifted to March 15 rather than April 15 a couple years ago. So you may not have that much longer to wait.
posted by Johnny Assay at 1:27 PM on March 6, 2019 [1 favorite]


You can get an automatic six-month extension to file. I have done that. It was super easy. You don't get an extension to pay, but if you're owed a refund, that doesn't matter.

That seems easier to me than amending a return. (Sorry if you know this and have already decided against it - just wanted to make sure you know it's an option since you didn't say.)
posted by FencingGal at 1:29 PM on March 6, 2019 [1 favorite]


If it was April 6th, I would say go ahead and file with a high estimate. It is March 6th. Just wait until you have the 1099.
posted by soelo at 1:41 PM on March 6, 2019 [2 favorites]


Amended returns are processed by humans, not the automated system, and some accountants believe that this puts you at a higher risk for audit.
posted by jgreco at 2:06 PM on March 6, 2019


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