What is the normal charge for a 1040X from H&R Block?

Question

Does anyone have an idea?

I basically only have 1 item to change. I actually paid more taxes than the IRS is claiming and have the original 1099-R form my old pension plan.

If I send in a copy of the 1099-R along with the 1040X, will that expedite things more quickly with the IRS?

Also, I think I should wait to have this 1040X issue resolved first then file this year's taxes -- that would make things much simpler -- do you guys agree with this logic?

THANKS SO MUCH!

Answer 1

If the original return was prepared by H&R Block they will charge you ONLY for any additional forms.

If the original return was prepared by anybody else, H&R Block will charge you the full price for a whole return.

Answer 2

The cost of an amended return is typically the same as the cost of the original return unless you're introducing something very complicated such as a large block of stock trades or something of that nature that wasn't on the original return.

If the IRS sent you a CP2000 notice showing a taxable distribution from a pension plan not listed on your tax return and it did not include the taxes withheld on the Form 1099-R then you will need to amend to correct the problem.

Check the CP2000 carefully and compare the amount they list as withheld with what your original return states. If it's higher by the amount on the Form 1099-R then they have the correct numbers and have probably correctly assessed the additional tax, penalties, and interest. If that's the case, just pay it and be done with it.

Keep in mind that the 20% withheld from a plan distribution is often not enough to cover the total tax liability especially if you are under age 59 1/2 and don't qualify for one of the exceptions to the 10% penalty. If you were even only in a 15% tax bracket, the total tax and penalty on the distribution would be 25% so the 20% withholding would not be sufficient to cover your total debt.

Don't delay on this since if you wait you will owe additional penalties and interest until the debt is paid!

Answer 3

I think Bostonian has given you a good answer.

As for the H & R Block question -- it depends on the office and the tax pro who helps you. I assume you had the original return done by Block. If that is the case take the IRS letter and the 1099-R in with you to the same office. Sometimes, especially if you purchased Peace of Mind coverage, they will fix it and charge nothing or they will charge a minimum amount.

Answer 4

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Answer 5

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