Amended vs. Superseded Tax Returns: What's The Difference?

Although they are often confused, amended and superseded tax returns are both types of tax returns that are filed with the Internal Revenue Service (IRS) after the original tax return has been filed. There are important differences between amended and superseded tax returns, and it is important to understand these differences to correctly file your taxes.

In this blog post, we will first define both superseded and amended tax returns. Finally, the four key differences will be explained between the two, including minute details.

Let's get started.

What are Amended Tax Returns?

Amended tax returns are used to make changes to your original tax return after it has been filed. This may be necessary if you discover that you made a mistake on your original tax return, or if you need to make changes to your filing status or the number of your deductions.

To file an amended tax return, you will need to complete Form 1040X and submit it to the IRS along with any supporting documentation. You can file an amended tax return at any time, but you must do so within three years of the date that you filed your original tax return or within two years of the date that you paid the tax, whichever is later.

What are Superseded Tax Returns?

Superseded tax returns are used to replace your original tax return with a new tax return that includes changes or corrections. This may be necessary if you discover that you made a significant mistake on your original tax return that cannot be corrected through an amended return. 

To file a superseded tax return, you will need to complete a new tax return and submit it to the IRS along with a letter explaining the reason for the superseded return. You can only file a superseded tax return within the same tax year as the original tax return.

Key Differences

By understanding the differences between amended and superseded tax returns, you can choose the appropriate option for making changes or corrections to your tax return. Some of the key differences between amended and superseded tax returns include:

Purpose

As mentioned in the above paragraphs, amended and superseded returns have a completely different purpose. Amended tax returns are only used if there is a change required to your original tax return when it has been filed. Of course, this is generally done to reduce the amount of tax to an error or to completely verify if your expenses and revenue are correct. A superseded return replaces your original tax return, which is used in more serious situations, especially if there were fundamental errors and mistakes on the original return.

Form

To file an amended tax return, you will need to complete Form 1040X and submit it to the IRS along with any supporting documentation. To file a superseded tax return, you will need to complete a new tax return and submit it to the IRS along with a letter explaining the reason for the superseded return. The IRS is extremely stringent on these rules, so there is no guarantee that this will be accepted. Generally speaking, only cases that put forth well-researched arguments and specific facts have a higher chance of being accepted.

Timeframe

You can file an amended tax return at any time, but you must do so within three years of the date that you filed your original tax return or within two years of the date that you paid the tax, whichever is later. Superseded tax returns can only be filed within the same tax year as the original tax return.

Impact on Original Tax Return

When you file an amended tax return, your original tax return remains in effect and the changes made to the amended return are incorporated into it. When you file a superseded tax return, your original tax return is replaced by the new tax return, and the original tax return is no longer in effect.

The Importance of a Professional Accounting Team

Of course, the most difficult question to answer when filing your returns is always surrounding documentation and accuracy. It is not enough to know the process but to fully understand the scope of the work in regard to continuous bookkeeping and accounting efforts. If you are having difficulty amending or superseding a tax return, perhaps it is best to outsource your worries and struggles to your local quality professionals at MB group.

MB group is well-versed in the latest accounting laws and principles and is knowledgeable in every aspect. Of course, we can also ensure that your documents are completed correctly the first time around, which eliminates the need for an amended or superseded tax return. If you are looking to save time, save money, and have the all-important peace of mind that you desire, contact MB group today!

FAQs

• Why would it be important to file a superseded return instead of an amended return?- It is important to file a superseded return instead of an amended return when you need to replace your original tax return with a new one that includes changes or corrections. This is especially necessary if you made a significant mistake on your original tax return that cannot be resolved through an amended return. By filing a superseded return, you ensure that the correct information is reflected in your tax records.
• Does IRS accept superseded tax returns?- Yes, the IRS accepts superseded tax returns for Form 1040, 1040-SR, 1040-SS, 1040-PR, and 1040-NR. To e-file a superseded return, go to the General Information section on screen ELF and mark the Superseded Return box. Follow the steps for completing an amended return to submit it electronically. Ensure all necessary changes are made accurately.
• What states allow superseded returns?- Currently, California, New York, and Utah are the only states that accept superseded returns. If your federal return is marked as superseded, these states will also consider the returns to be superseded. However, please note that if you resubmit other state returns with a superseded federal return, these states may reject them as duplicate filings.

Related: How To File a Tax Extension