What to do (new info on filed return)?

[Catherine]

Filed a return last week.  Today we get an updated (note:  *not* "corrected") 1041 from a trust.  All numbers are the same except for a new entry on Line 5.  I checked; it makes a $91 difference in federal tax (did not check the state return yet).  Can we still file a new "original" return (which would have to be on paper, I should think), or should we wait six weeks and amend?  

I have known for a long time that these particular trustees were incompetent bozos; looks like they picked a matching accountant.  Sheesh.

[Jack from Ohio]

Wait and do nothing until (if/when) you receive something from the IRS.  I was of the mind, that unless it made more than $100 difference in tax, the IRS will not pursue it.

[Catherine]

45 minutes ago, Jack from Ohio said:

unless it made more than $100 difference in tax

I thought the "magic number" was $50.  I will ponder a bit longer.  There's another week if we decide to try to file a "new original" return.

[rfassett]

Hey Bozo Catherine (or is it Catherine Bozo} - in either case, let's not poke fun at Bozo - he is one of my favorite clowns!

I have not done recent research, but I was under the impression that super-ceding returns were required to be filed by the original due date for returns that were previously filed in that year.  Now - that could have changed.  But to be safe, I would discuss it with the client and recommend amending with a charge (assuming this was not an error made by Bozo the Catherine}.

[Abby Normal]

The IRS can't match K1s. They tried once and it was a spectacular failure. I doubt they've had the resources or the will to try again. So if you want to amend, do it. And if you want to wait and hear, that's up to you.

I would never file a second return. I only do amended. And you don't have to wait 6 weeks. It will take the IRS 6 weeks to even look at it. Amended returns take months now.

[rfassett]

I have only ever done one once in my lengthy career - that was just this April.  I did it this time because it really needed to be done to fix a big problem a DIYer created.

[jklcpa]

I've never done a second original either, only amended returns.  I'd be concerned about the states' handling of second originals, so given the choice, I'd prepare amended returns. In cases where the amount of tax is small, and if it doesn't affect other calculations or items that may affect future returns (like some sort of carryover or basis), I'd discuss with the client and give them the choice whether to amend or not.

[Catherine]

Thanks, all.  My assistant is out next week (pre-arranged long ago) so we are concentrating on finishing up (and him printing!) all the big gnarly returns by end of day Friday.  This one, if the client decides to act, can wait until after 10/15 at least.  (Hey, by then my assistant will be back and *he* can do the printing!).