Tax Insights

Your Guide to State, Local, Federal, Estate + International Taxation

Amended vs. superseded tax return

Most of us know what an amended tax return is.  But what about its lesser-known sibling the superseded tax return? In short, a superseded tax return is a return filed subsequent to the originally filed tax return but filed within the filing period of the original return including valid extensions. The return is filed using the usual 1040 forms versus a 1040X form for an amended return.

A superseded return could be filed for many reasons such as inadvertent mistakes or omissions discovered on the originally filed return after it is filed, but before it’s due date. Until recently, the IRS was inconsistent in whether it treated the original return or superseding return as the controlling return for statutory assessment and refund purposes when both were filed before an extended due date.

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In June 2020, IRS Chief Counsel released advice providing that the original return controlled the statutory periods for assessment and refund. The Internal Revenue Manual has been updated to reflect the position that neither the assessment statute expiration date nor the refund statute expiration date should be reset by the filing of a superseding return during the period of extension to file a return. So even though the superseding return is considered “the return” for many reasons, it is still viewed as “supplementing” an already-filed tax return for purposes of statutes of limitation.

IRS must assess tax within three years after the return for that year was filed. A taxpayer must file a claim for refund of any tax within three years from the time the return was filed, or two years from the time the tax was paid, whichever period expires later.

If you have any questions, please contact your Henry+Horne advisor.

Dale Jensen, CPA