Can I fix IRS errors on Form 1125-A? They messed up 3 lines and item d

Thank you for the quick response! I do file as a sole proprietor, so Form 1040-X sounds right. But I'm a little confused - will this form let me correct all the specific line items on the 1125-A? And do I need to recalculate my entire tax return or just submit the corrected Form 1125-A?

You'll need to complete the entire 1040-X form and recalculate your tax liability based on the correct numbers. The 1040-X allows you to show what was reported originally, what the correct amounts should be, and the difference between them. In Part III of Form 1040-X, you'll explain each correction in detail - mention each specific line on Form 1125-A that was incorrectly transcribed, what the correct values are, and how these corrections affect your Schedule C and ultimately your tax liability. This comprehensive approach ensures the IRS understands exactly what needs to be fixed.

That's interesting. Does this taxr.ai service actually help with preparing the amended return itself or just identifying the errors? I'm dealing with a similar issue where the IRS transposed some numbers on my rental property income.

I'm skeptical of these online services. How does it actually work? Does it have access to what the IRS has on file for you? And how much does it cost? Seems like something I could just do myself with enough time.

It helps with both identifying errors and preparing the proper documentation. It reviews your submitted forms against what the IRS processed and pinpoints exactly where the discrepancies are. For your rental property situation, it would highlight those transposed numbers and generate the appropriate explanation language for your 1040-X. The service doesn't have direct access to IRS records - you upload your original return and the IRS notice or transcript showing the errors. It then analyzes both documents, identifies discrepancies, and helps you prepare a comprehensive amendment package with the right supporting documentation. Sure, you could do it yourself with enough time and tax knowledge, but it saved me hours of frustration and ensured I didn't miss anything important.

Wait, how does this even work? The IRS phone system is the worst! I've tried calling at least 20 times over the past month and can never get through. Does this service somehow bypass the queue?

This sounds too good to be true. The IRS is literally unreachable these days. I tried calling for 3 weeks straight about an error they made. If this actually works, it would be amazing, but I'm highly doubtful any service can magically get through when millions of people can't.

It doesn't bypass the queue exactly. The service uses an automated system that continually calls the IRS for you and navigates through all the initial prompts. When it finally gets in the queue, it holds your place and then calls you when it reaches an actual human. You don't have to sit there listening to hold music for hours or repeatedly calling only to get the "high call volume" message. I was skeptical too, but it absolutely works. The technology basically does the tedious part for you - the calling, redialing when disconnected, navigating the menu options, and waiting on hold. When an actual IRS agent comes on the line, you get a call connecting you directly to them. For my situation, getting specific guidance from the agent made filing my amendment much more straightforward since they confirmed exactly what documentation I needed to include.

That's a really good point I hadn't considered. If they messed up my COGS on the 1125-A, it definitely would have changed my Schedule C profit and then my self-employment tax on Schedule SE. Should I submit copies of all three forms with my amendment or just the 1125-A?

You should submit the entire amended tax return package, including the corrected 1125-A, Schedule C, Schedule SE, and main 1040 form. This gives the IRS a complete picture of how the corrections flow through your entire return. When preparing your 1040-X, you'll need to show the original figures that were processed, the corrected figures, and the difference between them. Make sure your explanation in Part III clearly traces how the 1125-A errors affected each subsequent form. For example: "The IRS incorrectly transcribed line 2 of Form 1125-A as $8,400 instead of the correct amount of $11,250. This error reduced my Cost of Goods Sold by $2,850, which incorrectly increased my Schedule C profit and subsequently my self-employment tax on Schedule SE." This level of detail helps the IRS follow your calculations and process your amendment more efficiently.

I used TaxAct to prepare an amended return last year when the IRS messed up my itemized deductions. It worked fine but you have to be very careful. The software doesn't automatically know that you're correcting IRS errors versus changing your own entries. Make sure you use the explanation section to clearly state that you're fixing IRS transcription errors, not changing your original filing.