Amending A Business Return

Form 1120 is the only business return with a separate amended return (Form 1120X). For all other entities, the original form has a check box in the form heading that indicates the return has been amended. Before amending any return, save a copy of the original return to paper or PDF for reference purposes as the original form will be changed as a result of the amending process.

Amending Forms 1120-S, 1065, 1041, 990, or 990-EZ

These returns don't have a separate form for the purpose of amending, rather they have a check box at the top of the form indicating it has been amended. Thus amending the return involves several steps:

1. Open the return and correct it as needed. Keep track of the line number(s) changed and the reason(s) for the change for the next step.
2. From the Main Menu of the return select:
   • Heading Information
   • Other Information (1120-S, 1041, 990, 990-EZ)
     or
     Other Categories (1065)
   • Amended Return - Answer YES to the question to confirm that you are amending.
3. Select New, then enter four bits of info:
   • The line number being changed (digits only, no letters);
   • A brief description (50 characters max);
   • The amount on the line in the previously filed return
   • The amount on the line in this return.
   After clicking Ok, enter more information if needed in the Description window.
   Repeat the above steps for each line number that you changed.
4. For passthrough returns, if the Schedule(s) K-1 changed as a result of amending the return, be sure to open each K-1 and mark it as amended also:
   • 1041 and 1120-S: Open each K-1 and click Amended K-1?, changing from No to Yes.
   • 1065: Open each K-1, select Other Information, then click Amended K-1?, changing from No to Yes.

If the Schedules K-1 were amended, be sure to send a copy of each to shareholder, partner, or beneficiary.

When you print the return, there will be an X in the Amended Return check box in the heading (and K-1s if they were also amended) indicating that the return has been amended.

Note: The amended Form 1120-S, 1065, 1041, 990, and 990-EZ returns can be electronically filed.

Amending Form 1120

Form 1120X is produced when amending Form 1120. At the beginning of the process of creating Form 1120X, you will see the message: "Changes MUST be made thru the 1120 Program". You will change Form 1120, rather than only complete Form 1120X, for several reasons:

• Form 1120X is only a summary of the changes made to the 1120, so changes made only in the 1120X menus do not reflect backwards to the 1120.
• Making changes to Form 1120 allows the software to do the calculating, rather than you having to do the calculations manually.
• The amended Form 1120 return becomes the new original return for potential future amended returns.
• The amended Form 1120 return provides the basis for information pulled into next year's return.

To amend Form 1120, from the Main Menu of the tax return select:

• Miscellaneous
• 1120X - Amended Return
• Form 1120X Menu - Select the year being amended, then OK.
• Original Column, then OK.
• Questions - Evaluate and complete each menu line as appropriate. Click Exit when done.
• Part II- Explanation of Changes - Enter a description of the changes that you are making to the original return.
• Select Exit, then Exit again, returning you to the Miscellaneous menu.

At this point, make any necessary changes to the return. Once you have finished changing the return, select:

• Miscellaneous
• 1120X - Amended Return
• Form 1120X Menu  - Select the year being amended, then OK.
• Corrected Column, then OK.
• Part I - Income & Deductions - Evaluate the Payments & Credits and Amount Due menu for any entries that need to be made.
• Exit back to the main return.

If you later need to return to the 1120X menu but don't want to make any changes, when you arrive at the window headed "Select Column to Pull Current Data", select Do Not Pull Data. This will leave your previous work as it is.

Note: The amended Form 1120 can be electronically filed.