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Level 3
August 20, 2023
Question

Amending 2021 540 when the only change would be a capital loss carryover

  • August 20, 2023
  • 2 replies
  • 19 views

I'm amending a series of client returns for years 2020 and 2021 due to client omission of a LTCL in 2020.  The 2021 540 had no liability so the only impact here is through the Fed AGI use of the implied $3K limit on the LTCL.  The filing of a zero-impact X form just because the implied Fed carryover would reduce does not appear to make sense.  Am I correct?  Thanks in advance!  jl

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2 replies

Intuit Community Champion
August 21, 2023

Here is a link from IRS " should I file an amended return" 

https://www.irs.gov/help/ita/should-i-file-an-amended-return

jblynchAuthor
Level 3
August 26, 2023

Thanks for responding!

sjrcpa
Level 15
August 21, 2023

I would not amend the 540 for that. 

I would note in my workpapers the correct carryover.

The more I know the more I don’t know.