IRS allows tax payers to amend (Correct) their tax returns for last three years (TY 2018, 2017 & 2016) filed tax returns for additional refunds if missed any exemptions, deductions and credits.
IRS has a right to check last 6 years filed tax returns of any tax payer as per its regular checks, to find out any discrepancies on tax returns with the help of its examiners and software’s. Every year millions of tax payers are getting notices, it means a tax payer has to ensure that his/her tax returns are filed accurately. Filing right tax returns avoids payment notices from IRS, especially this can avoid any hurdles in H1 or GC processing.
Primarily there are two types of tax payers:
1. Resident (H1, L1, GC, Citizens etc) who file form 1040.
2. Non-resident tax filers (F1-OPT, F1-CPT, M, J Q) who file form 1040NR.
Tax payers can amend (Correct) their last three years filed tax return due to some of the below reason:
Filing right tax returns
Filing correct filing status
Claiming additional dependents
Disclosing Unreported Income
Claiming Non-refundable Credits
Carry back claim
We have noticed that due lake of proper guidance and tax knowledge, Non-resident students being on F1-OPT, F1-CPT, M, J,Q Visas need to file form 1040NR, but filing form 1040 through various online tax filing websites. IRS clearly states that non-residents are not entitled to file form 1040, the residents who are on H1, L1, GC, Citizens etc. need to file form 1040.
1. According to the USA tax laws Indians who are in USA as students are not entitled to choose MFJ- Married filing jointly filing status, should not file AOTC, Education Credits etc.
2. A Non-resident can amend his/her filed last three years tax returns for corrections and additional refunds, it’s a good idea to do it since it can avoid hefty penalties.
3. Non-residents can amend their tax return to change from Form 1040 to 1040NR, EIC, and correcting Ineligible claim of AOTC etc.
In order to avoid any notice, query or audit from the IRS and state income tax departments, we recommend all the tax payers to avail our Filed Tax Returns Assessment & Examination for any or all tax years 2018, 2017, and 2016 for corrections and additional refunds from IRS and State income tax departments. This can undoubtedly ease out any tax related issues in near future.