An amended (Form 1040X) or corrected (duplicate) return filed on or before the due date or the extended due date (posted TC 460) is a superseding return. See IRM 22.214.171.124.3 (1)(1.)
Superseding returns are subsequent returns filed within the same filing period as the original return (including extensions). A superseding return is considered the original filing, because the return takes the place of any other return that was previously filed during the filing period. All e-filed business rules that are enforced for the original return apply to the superseded return. (See Haggar Co v Helvering, Riley Co v Comr, Nat’l Lead v Comr)
Amended returns are subsequent returns filed after the extended due date of the original return. For 1120, 1120S, 1120-F, and 1065 returns, the amended return should include the main form and any changes that you made. Also, for 1120 returns, only a subset of the business rules apply, while 1065 returns follow all business rules.
IRS: Amended and Superseding Corporate Returns
Who cares? Generally (but not always), a superseding return is better for the taxpayer.
Generally, if the taxpayer originally overstated his tax, then a superseding return is better, especially if the taxpayer wants an overpayment to be applied to the following year as a “credit elect.”
Generally, if the taxpayer originally understated his tax, then a superseding return could be “better,” in the sense that late payment penalties are generally based on the original return. But it could be “worse” in that filing an incorrect return that understands tax liability could be considered fraud.
Besides the “credit elect” election mentioned above, there are a few other items, such as tax elections, that once filed cannot be changed or amended later on. For example, electing to file MFJ (married filing joint) is generally irrevocable, but with a timely filed superseding return each spouse could separately elect to file MFS (married filing separate)
|SUBSTITUTE FOR RETURN
(SFR) a/k/a informally as a
SERVICE FILED RETURN
|A complete return prepared from information submitted by the taxpayer on other than a tax return with his signature.|
|SUPERSEDING (CORRECTING RETURN)||A second return submitted by a taxpayer before the due date which changes information on a return previously submitted.|
IRM 126.96.36.199.3 (08-02-2016)
1.The due date of a calendar year individual income tax return is April 15. A fiscal year individual income tax return is due the fifteenth day of the fourth month following the close of the fiscal year.
1.An amended (Form 1040X) or corrected (duplicate) return filed on or before the due date or the extended due date (posted TC 460) is a superseding return.
2.Correspondence postmarked on or before the due date or extended due date (posted TC 460), requesting changes to tax returns, is processed as superseding information.
Note: These amended returns are processed as any other amended return is processed.
2.If the superseding return has an unpaid net balance due increase, routed to CIS/AM.
IRM 188.8.131.52.4 (10-07-2016)
Amended Form 1040 with No Form 1040X Attached / True Duplicates (TRUE DUPES)
1.A true duplicate condition occurs when the taxpayer files two Form 1040 series returns for the same tax year. Often the taxpayer will send in a Form 1040/A/EZ with a notation of “Duplicate” , “Copy” , “Substitute” , “Amended” , “Corrected” , “Revised” , “Superseding” , or “Tentative” , or attaches a copy of a previously filed return. Taxpayer’s may also amend their return using a Form 1040 as opposed to a Form 1040X.
2.Research for a TC 150 per IRM 184.108.40.206.1. If no TC 150 has posted, circle out any notation that suggests the return was previously filed. Edit No TC 150 and the current date in the upper left margin and send to Batching to be processed as an original return. Do not notate PAO on the documents.
IRM 220.127.116.11.6.1 (01-01-2017)
Protecting Americans from Tax Hikes
1.The Protecting Americans from Tax Hikes Act (PATH Act) was enacted December 18, 2015. The PATH Act prohibits taxpayers from retroactively claiming certain TIN related credits for any tax year in which the taxpayer, spouse or qualifying child did not have a valid TIN assigned by return due date or due date as extended. The PATH Act applies to:
•Child Tax Credit (CTC)
•Additional Child Tax Credit (ACTC)
•American Opportunity Credit (AOTC) -both refundable and non-refundable
•Earned Income Credit (EIC)
•CP notices 08, 09 and 27.
2.Credit specific eligibility requirements apply in addition to the PATH Act criteria.
3.PATH Act does not apply to superseding returns.
4.The Path Act does not allow the removal of PATH credits previously allowed due to a filing status change to Married filing jointly unless initiated by the taxpayer. Apply the PATH Act using the following table:
IRM 18.104.22.168.4 (03-31-2010)
1.In most cases the estimated tax penalty is computed based on the tax shown on the taxpayer’s original return. However, if the taxpayer files a superseding return, the penalty is computed on the tax shown on that superseding return.
2.A superseding return is defined as a second (or subsequent) return filed before the due date for filing, including extensions. Please note that the superseding return is determined based on the order in which the returns were filed. It is not based on which return was processed first.
3.The estimated tax penalty MUST be manually computed and adjusted unless either of the following applies:
1.The tax on the original and the superseding return is the same, or
2.The superseding return posted as TC 150 in the module.
The manual adjustment requirement applies even if there is no penalty due or if the penalty does not change. The manual adjustment will prevent an incorrect computer generated adjustment if withholding or ES payments are changed.
IRM 22.214.171.124.6 (05-26-2016)
Credit Elect Problems
1.A taxpayer may elect to have all or a portion of an overpayment credited to the next year’s estimated tax (ES). The “credit elect” can be recognized by TC 836 on the current year’s module and TC 716 on the following year’s module. Access CC REINF or CC IMFOL if there is no data on CC TXMOD.
Taxpayers may also elect to have an overpayment credited to another year/period other than the immediately succeeding tax year or period. See IRM 126.96.36.199.2 Rules for Applying Offsets Under Section 6402, for guidance.
2.When a taxpayer inquires about a refund and research shows the overpayment was applied as a credit elect for the following year, the overpayment is only refundable if:
1.It was applied as a credit elect to the following year due to a processing error.
2.The taxpayer is not liable for ES, and he/she erred in entering the overpayment as a credit elect.
3.The taxpayer files a balance due superseding return and requests a credit elect reversal to satisfy the balance due. See IRM 188.8.131.52.6.1, Credit Elect Reversals, for additional information.
IRM 184.108.40.206.6.1 (10-09-2015)
Credit Elect Reversals
1.In order to process a credit elect reversal for IMF accounts, the request must be received:
•Before the return for the credit year has posted, and
•Before March 1, of the year following the year to which the credit was applied
A request to reverse a credit elect from a 2013 account back to the 2012 account must be received before the 2013 return has posted and before March 1, 2014.
4.Do not reverse credit elect to offset additional tax or penalties subsequently assessed on the year of overpayment unless the request is on a superseding return (amended return postmarked on or before return due date or extended due date). When working correspondence use the Letter 247C, Taxpayer Advised Re: Estimated Taxes/Refund, or call the taxpayer to explain that the credit elect is binding.
Pub 4164, page 25 discusses superseding returns. As this is with regard to the e-file system it does not help give any guidance. It just says you can’t file a superseded 1040 via the MeF.
CCA 200645019 also addresses what a superseded return is.
Forbes: You Just Filed Your Taxes, Is It Too Early To Amend?
What is posted TC 460? Doc. Code 77: IMF-Form 4868 extension for other than automatic 6 months and Form 2350. Form 4868 with international FLC (20, 21,66 and 98) in DLN maximum extension to 12/15/YYYY (U.S. citizens who live and work or serve in the military abroad). International DLN with Blocking range 400-499 indicates Form 2350. Form 2350maximum extension to RDD plus 11 1/2 months. BMF-Forms 7004/8868/5558/8892. Establishes a Tax Module, updates Status to 04, and updates related filing requirements except for Forms 706 and 709. Applies to 706-GS(D), 706-GS(T), 1041(estate other than a bankruptcy estate) 1041 (bankruptcy estate only) 1041-N, 1041-QFT, 1042, 1065, 1065-B, 1120 series, 3520-A, 8612, 8804, 5330, 990, 990-EZ, 990-BL, 990-PF, 990-T series, 1041-A, 4720, 5227 and 709. Doc. Code 17, 19 AUTOMATIC EXTENSION FORM 4868 IMF ONLY. TC 460 as a secondary transaction with TC 670 indicates approved automatic extension. TY 2006 and subsequent, generates Extended Due Date to October 15 (i.e. RDD plus six months). BMF: Generated when TC 670 with Secondary TC 460 is input to MFT 51 module. Extended due date on generated TC 460 is October 15 of the following year (i.e. RDD plus six months). Also generated when approved extension TC 620 posts to MFT 02/05/06/07/08/12/33/34/36/37/42/66/67/76/77/78, Exception: MFT 05 (Form 1041 (estate other than a bankruptcy estate) only), MFT 06 (Form 1065 only) and MFT 08, Generated Extended Due Date to RDD plus 5 months. For MFT 36/37/44/67, first approved extension generated Extended Due Date to RDD plus 3 months; second approved extension generates Extended Due Date to RDD plus six months. EPMF: Doc Code 77 Form 5558 MFT 74 posts to EPMF. https://www.auditdetective.com/Transaction_Code_Definitions.html