What if I Disagree with an Audit?
Tax Relief with Timalyn Bowens
Episode 63: In this episode, Timalyn concludes her series on IRS audits by addressing a critical concern: what to do if you disagree with an audit decision. In the previous two episodes, Timalyn broke down what IRS audits are and why taxpayers may be selected for one. Now, she helps listeners understand the next step—how to respond when they believe the IRS got it wrong. Mistakes happen, whether it’s human error or an automated system glitch. But you don’t have to accept the results without a fight. Timalyn walks through the three potential outcomes of an audit: No Change: You provided...
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Why Am I Being Selected for an Audit?
Tax Relief with Timalyn Bowens
Episode 62: In this episode, Timalyn explains why the IRS selects certain taxpayers for audits and reassures listeners that being chosen does not automatically mean anything is wrong. Following up on last week’s episode, , Timalyn continues her audit series by breaking down how audit selections are made and why it is important not to panic if you receive an IRS notice. Contrary to common fears, receiving an audit notice does not mean jail time or that you did something wrong. Many audits are selected at random or flagged through a computer system that looks for unusual patterns or...
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What is an IRS Audit?
Tax Relief with Timalyn Bowens
Episode 61: In this episode, Timalyn breaks down one of the most misunderstood topics in tax: the IRS audit. After 60+ episodes of educating taxpayers, she’s kicking off a brand-new series that explores what an audit really means — and what it doesn’t. Many people fear a suit-wearing IRS agent knocking at their door, but as Timalyn explains, that’s highly unlikely. Instead, most audits today are conducted through correspondence and notices, not surprise visits. So, what is an audit? An IRS audit is simply a review or examination of your accounts and financial information to ensure you...
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Your Right to Appeal IRS Decisions
Tax Relief with Timalyn Bowens
Episode 60: In this episode, Timalyn explains your right to appeal unfair IRS decisions and why you shouldn't give up. We are celebrating three years and 60 episodes of the Tax Relief with Timalyn Bowens podcast! Provisions from the 2017 Tax Cuts and Jobs Act are set to expire in December, and many taxpayers are worried about IRS mistakes - especially after recent budget cuts and workforce reductions. Does this mean you have to accept wrongful IRS decisions? Timalyn says absolutely not. She explains that the IRS has an Independent Office of Appeals that provides fair, impartial review of...
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Is the IRS Going Away?
Tax Relief with Timalyn Bowens
Episode 59: In this episode, Timalyn addresses whether or not the IRS is here to stay. We have seen significant changes at the IRS within the past few months as they went through a work force reduction. We have also seen them lose $40 billion of the $80 billion that was promised to them in funding by the Biden Administration. Does this mean that they are going to go bye bye? Timalyn doesn't believe so. She believes that this smaller force will make it more difficult for taxpayers to handle their IRS issues on their own. She also fears that some taxpayers will receive unfair treatment, as well...
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How Long Do You Have to Pay Taxes?
Tax Relief with Timalyn Bowens
Episode 58: In this episode, Timalyn explains how much time you have to pay your tax bill and how much time the IRS legally has to collect. Your tax balance is due on the due date of the return. However, when the IRS sends you a will give you 30 days to pay before the IRS uses any enforcement. This includes things like an or . If you can pay the debt off within 180 days you may qualify for a short-term installment agreement. This agreement can be arranged using your online IRS.gov account to set up an online payment agreement (OPA). If the amount is over $50,000 you will have to...
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Why Do I Owe Taxes This Year?
Tax Relief with Timalyn Bowens
Episode 57: In this episode, Timalyn explains the reason you likely owe taxes this year. She highlights 5 common reasons that people owe each year. It is ultimately the responsibility of the taxpayer to ensure that they are withholding enough taxes. The top 2 reasons that people owe the IRS is because their withholding and/or estimated tax payments are off. Timalyn has created a series on her YouTube channel to walk you through the process of correcting your withholding for a W-2 job, pension, or your social security. You can find this series below. If you are self-employed or...
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What If I Can't Pay My Taxes?
Tax Relief with Timalyn Bowens
Episode 56: In this episode, Timalyn explains that all hope is not lost if you can't pay your taxes in full. You do have options! First, take a deep breath! Make sure that you have your tax return filed on time. This will help you avoid any additional penalties, such as the . Payment Arrangments You may qualify to pay your balance over time. If you owe less than $50,000 and have been tax compliant you may qualify to set up an OPA yourself using the IRS website. An OPA is an . If the balance is $10,000 or less and you haven't owed in the past 3 years or defaulted on an...
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The Failure to File Penalty
Tax Relief with Timalyn Bowens
Episode 55: In this episode, Timalyn explains what the failure to file penalty is and why it is adding so much to your tax bill. She will not only talk about what it is but how it's calculated, and how to potentially get it removed. Can't File Your Taxes On Time? You can avoid the failure-to-file penalty by filing a timely tax return or tax extension. If you're an individual needing to file an extension you can do so by filing Form 4868. Timalyn will have a video to walk you through filing the 2024 4868 on her YouTube channel, coming out on March 31st. The Failure to File...
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Is Unemployment Taxable?
Tax Relief with Timalyn Bowens
In Episode 54 Timalyn discusses unemployment tax and how it affects a taxpayer's tax liability. Some forms of unemployment are not taxable such as workers compensation. The topics covered in this episode are: What is unemployment? Is unemployment taxable? What's workers compensation? How is unemployment reported? What is Form 1099-G? If you'd like to work with Timalyn directly, you can book a call with her at www.Bowenstaxsolutions.com . As we conclude Episode 54, we’d like to encourage you to connect with Timalyn on social media. You’ll be able to...
info_outlineEpisode 40: Have you ever filed your tax return and then realized something doesn’t look right on the return? You have the right to file an amended tax return to correct mistakes and/or oversights. Timalyn will explain what this is and why you should file it.
IRS Form 1040-X
The IRS Form 1040-X Amended Individual Tax Return is the form you’ll use to correct your original return. There are other types of amended returns. Form 1065-X is used for Partnerships, Form 1120-X and 1120S-X are used for Corporation and S-Corporation amendments. For today’s episode, Timalyn will focus on the 1040-X.
What Is a Continuous Use Form?
The IRS Form 1040-X is considered a continuous use form. This means the IRS isn’t updating this form each year. If your return is for 2020 or later, you’ll use the same form.
You Found a Mistake, So Now What?
It’s possible that by filing the 1040-X, you could be able to reduce your tax liability based on the new (amended) information. Even if it doesn’t reduce your liability, it may still reduce the penalties and interest.
Timalyn uses the example of how business owners may have overlooked the Sick and Family leave credit during the COVID years. There are 2 resources you may want to review to see if you are eligible for the credits:
- Sick and Family Leave Credits for Self-Employed Taxpayers
- Is there a Tax Credit for Self-Employed Workers Affected by the Coronavirus?
The 1040-X is used to correct a 1040, 1040-SR (for seniors) or 1040-NR (for non-residents). It can be used to make adjustments for credits or deductions originally missed, it can be used to claim a carry-back due to a loss or unused credit. The 1040-X can also be used to make certain elections, after the prescribed deadline.
The 1040-X shows your original information and then shows how the additiona information changes the originally submitted return.
You can use the form to correct a genuine mistake. If the IRS doesn’t correct a math mistake, you could use the 1040-X to make the correction. If you are worried about being assessed with an accuracy-related penalty, listen to Episode 28.
In Episode 25, Timalyn discussed Tax Basics 101. A credit against tax owed may need to be entered, because if the IRS corrects a math error, it may not address other issues related to that new information. Timalyn provides an example of this from a recent client’s situation.
Don’t Procrastinate
Timalyn explains that you must move in a timely manner when you realize there’s an error on your return. IRS form 1040-X must be filed within 3 years of the date you filed your original return, if you are now claiming a credit or refund, or within 2 years of the date you paid the tax, whichever is later. Note, the 3-year window does include extensions.
While this episode primarily deals with mistakes on your federal tax return, you may also need to review your state and local tax returns. The current 1040-X be e-filed. The 1040-X for 2019 and prior tax years cannot be e-filed. Timalyn uses the example of someone who either did or didn’t claim their child, this may need to be amended, once the error is identified.
Injured Spouse Relief
This was covered in Episode 15. You can use it to protect your share of a refund if your spouse owes back taxes, child support, or any other government entity entity. Timalyn also wrote an article about it. Make sure you include an updated injured spouse form with the 1040-X if a credit or refund is due. For more information on the form watch Timalyn’s video .
Don’t Intentionally Manipulate Your Income to Get a Mortgage
If you’re trying to get a mortgage and you intentionally file fraudulent information or try to manipulate the tax return so you qualify, you may be committing mortgage fraud. The 1040-X shouldn’t be used, after you’ve qualified using false information. If you need to generate additional income to qualify for a loan, focus on doing that and avoid the legal liability.
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Please also consider sharing this episode with your friends and family. There are many people dealing with tax issues, and you may not know about it. This information might be helpful to someone who really needs it. After all, back taxes shouldn’t ruin their life either.
As we conclude Episode 40, we encourage you to connect with Timalyn on social media. You’ll be able to subscribe to this podcast on Spotify, Apple Podcasts, Google Podcasts, and many other podcast platforms.
Remember, Timalyn Bowens is America’s Favorite EA and she’s here to fill the tax literacy gap, one taxpayer at a time. Thanks for listening to today’s episode.
For more information about tax relief options, visit https://www.Bowenstaxsolutions.com/ .
If you have any feedback, or suggestions for an upcoming episode topic, please submit them here: https://www.americasfavoriteea.com/contact.
Disclaimer: This podcast is for informational and educational purposes only. It provides a framework and possible solutions for solving your tax problems, but it is not legally binding. Please consult your tax professional regarding your specific tax situation.