Amending Education Credit

[grambuffy]

I just had couple here hoping to file early enough to get their refund before they leave for a trip to Hawaii on Feb 14th. The problem is they have an education credit which cannot be filed until Feb 11, I thold them I would file an amended return for them for the credit after they get home so they could file now and enjoy their vacation. I just opened my e-mail and had a post fromNATP that stated that if you file early with the idea of amending later with one of the held up credits they may encounter problems with the IRS later. What knind of problems? Penalties, denial of refund any one have any ideas on this I would like to know. This couple is not at fault for the delay, it is their first vacation ever after 10 years of marriage taking care of a handicapped child, I sure would hate to tell them they should forget about an early refund :angry:

[elfling]

One couple that was desperate for cash last year (2006 return) asked me to file the return that way. The initial return went right through and the refund was direct deposited on schedule. We followed with an amendment with form 8863 a few weeks later and that refund took 3 months to arrive. There were no questions asked, audits, or any other actual problem. It just took a long time to get the added money.

[jainen]

>>they may encounter problems with the IRS<<

I expect the IRS will be tolerant of such double filings, at least when the amendment doesn't show additional tax due. But you don't really have a right to file an amended return, so the IRS could delay or deny a claim that wasn't made on the original return. The basic problem is that you know you are submitting a false return.

It's also possible the IRS will sanction a professional who violates standards of practice in this way. I certainly would never advise a client to sign an incomplete return. After all, this is why RALs can be a good bargain (no, I don't provide RALs in my practice).

[kcjenkins]

Actually, you do have a right to file amendments, up until the 15th of April. And the IRS has too much real work to do to waste time trying to sanction preparers who file amendments because the client asks them to.

[Daune/CA]

Actually, you do have a right to file amendments, up until the 15th of April. And the IRS has too much real work to do to waste time trying to sanction preparers who file amendments because the client asks them to.

Isn't it a "Corrected Return" if filed before April 15th and an Amended Return if filed after April 15th?

That could indicate that the preparer was presented additional information resulting in a corrected return instead of filing an incomplete return. Just a thought.

[Slappy Tax]

Here's my opinion, and it's probably worth about what you're paying for it. I'd follow your original plan (file now, amend later) and wouldn't give it a second thought. The "information" from NATP (which admittedly I haven't seen) seems awfully vague and sounds more like someone trying to fill up space in a newsletter than anything to be concerned about. Besides, you're not an IRS-hating wacko (you aren't, are you?) doing this on a widespread basis as some strategy to inundate the IRS with time-consuming, unnecessary paperwork. I agree with KCJ: the IRS is not going to drop everything and make an example out of you for amending a return. I say, go for it and wish the couple bon voyage.

[elfling]

"The basic problem is that you know you are submitting a false return."