After announcing earlier in the year a plan to begin accepting a limited number of amended returns electronically later in the summer,[1] the IRS has now announced the beginning of this program.[2]

The program initially will only allow the electronic filing of the following amended forms for tax year 2019:

Form 1040 and
Form 1040-SR.

The news release notes that taxpayers may still file these returns on paper, using the Where’s My Amended Return?[3] online tool to check the status of either type of return.

The IRS notes the following advantages for filing amended returns electronically:

Currently, taxpayers must mail a completed Form 1040-X to the IRS for processing. The new electronic option allows the IRS to receive amended returns faster while minimizing errors normally associated with manually completing the form.

Since the tax-filing software allows users to input their data in a question-answer format, it simplifies the process for them. It also makes it easier for IRS employees to answer taxpayer questions since the data is entered electronically and submitted to the agency almost simultaneously.

“Adding the 1040-X to the e-filing portfolio provides a better experience for the taxpayer, all around. It makes submitting an amended return easier and it allows our employees to process it in a more efficient way,” said Ken Corbin, the IRS Wage and Investment commissioner and head of the division responsible for processing these returns.

What is not mentioned, but what practitioners are very aware of at this date, is that the IRS is also far behind in dealing with processing paper forms. The hope is that using this system will allow the taxpayer looking to claim a refund on an amended 2019 return to have their claim processed faster, and thus receive the refund faster as well.

The release notes that the IRS receives about 3 million Forms 1040-X each year.

Note that since only 2019 returns can be amended electronically, it is likely that a large number of amended returns filed for the remainder of the year will still need to be filed on paper. As well, it will likely take some time before all states will also accept electronically filed amended returns.

[1] Ed Zollars, CPA, “Forms 1040-X for 2019 Will Be Available for Electronic Filing Later in the Summer of 2020,” Current Federal Tax Developments website, May 28, 2020, https://www.currentfederaltaxdevelopments.com/blog/2020/5/28/njscarmoal24kg613zo6ltsrgwlqvm (retrieved August 18, 2020)

[2] “Now available: IRS Form 1040-X electronic filing,” IR-2020-182, August 17, 2020 https://www.irs.gov/newsroom/now-available-irs-form-1040-x-electronic-filing (retrieved August 18, 2020)

[3] https://www.irs.gov/filing/wheres-my-amended-return (retrieved August 18, 2020)