Amending a tax return

[Anonymous]

I am wondering if there's a deadline to amend my 2012 tax return to claim a loss from a partnership investment. The loss is about $30k which could bring down significantly my tax liability for that year. What are the main redflags I should be aware?

[Anonymous]

You have 7 years in which to file an amended return. If the government owes you money it's better to do it as soon as possible. No reason this would raise any red flags unless there is anything specific about the partnership investment or any of the information you submit. Just filing a revised form would not raise a red flag. Including a letter explaining the reason for the revision is a good idea.

[Anonymous]

Anonymous wrote:You have 7 years in which to file an amended return. If the government owes you money it's better to do it as soon as possible. No reason this would raise any red flags unless there is anything specific about the partnership investment or any of the information you submit. Just filing a revised form would not raise a red flag. Including a letter explaining the reason for the revision is a good idea.

I think there is only 3 years to file an amended return.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You have 7 years in which to file an amended return. If the government owes you money it's better to do it as soon as possible. No reason this would raise any red flags unless there is anything specific about the partnership investment or any of the information you submit. Just filing a revised form would not raise a red flag. Including a letter explaining the reason for the revision is a good idea.

I think there is only 3 years to file an amended return.

Yes, this is correct. But 2012 would still be in the window.

OP, so long as the partnership loss is legitimate, yes, you should amend. There's no red flags really on your end -- you are reporting something from a K-1 form. If the partnership itself produced sham losses, that could be a problem eventually. But there's a statute of limitations on that, too.

[Anonymous]

Thanks for your help!

so to be on the safe side I have until the end of 2015 to fill an amendment for the 2012 tax year, correct?

[Anonymous]

3 years from the due date (4/15/13) or when you filed. But by 2015 should be safe.

[Anonymous]

Anonymous wrote:Thanks for your help!

so to be on the safe side I have until the end of 2015 to fill an amendment for the 2012 tax year, correct?

You should probably check the instructions on form 1040X, but since your 2012 tax return was due April 15, 2013, I think you have until April 15, 2016.

[Anonymous]

3 years and be prepared for a long wait for any refund. We did this last April when we discovered mistakes on previous years returns. Just last week got a notice saying our refund is being processed - expect to wait a few more weeks.

[Anonymous]

Thanks everyone for the advice. Have a great holiday!