Amended Returns in ATX

[JackieCPA]

Hello!

My firm just started using ATX this past year. LOVE IT! My only question/concern is when you amend a return it automatically makes a copy of it so there are two returns under the same name. One was the first, second was the amended. When the clients roll over into the 2018 software, is there going to be two copies of each of the clients that were amended?

[rfassett]

You will select which ones to rollover.  Yes - there will be two but you will need to decide which one you want to rollover.

On another note, to make that process easier, you can always rename one of the returns.

[Abby Normal]

Alternately, you can just add the 1040X to the original file and not utilize the amended feature of ATX. That's what we do because we prefer to just have one file.

The downside to doing this is you have to manually enter the numbers in the original column but we still prefer it.

And, welcome!

[Abby Normal]

If you go with 2 files, prepend the name of the original return with something like ***OLD***. Then when you sort be name, these will be at the top, and easy to uncheck if you're doing some mass process.

Most ATX users only rollover clients as they come in, until it's time for extensions.

[Randall]

I always rename the amended return with 'Amended' included after the name.  When rolling over, roll over the amended so the correct amended numbers are rolled over.

 

[Abby Normal]

I believe ATX does that automatically for you when you save the amended return, but I prefer it before the name so it shows in the tab at the top for open returns. Sometimes I'd have both the old return and the amended return open and it's easier to see you're in the file if it says Amended at the beginning.

[Pacun]

90% of the time, it is easier to recreate the old 1040 with all the mistakes, tax reported, credit reported and the whole enchilada. Then you save it. After that you invoke the amend return command and a copy of that return will be kept intact and a new amended file will be created. On the new file, form 1040 will stay and 1040X will be added. Work on the 1040 and prepare it correctly as it should have been done in the first place. After you review the 1040 and you feel satisfied with it, go to 1040X and enter the explanation of what happened.  The calculations should be OK but take a look at the 1040X just to make sure. The other entries are easy to be answered with a check mark or entering a 1 on the correct column.

Going to your question, since 1040Xs are mailed and take a long time to process and some times we amend a year o two later, you will be better off if you roll over the old, incorrect 1040 file. The only time I think I will roll over the "amended" file will be if depreciation is involved. For example if they didn't include rental income for the 3 months (Oct, Nov, Dec) and I entered the cost and life of the house. Keep in mind that any required, extra form or schedule needed on the corrected 1040 needs to be attached to the 1040X. Also any schedule or form that change figures, needs to be included. For example, additional child tax credit form that had an entry of $250 and now has been bumped up to $760.

I said that 90% of the time it is a good idea to recreate the old, messed up return because:

Most 1040Xs report an extra W-2, 1099 series form, deductions not taken, dependents not claimed, credits not claimed, income not reported and errors by tax preparers. All these type of omissions are beautifully handled by the software if you follow what I said above.