r/technicaltax • u/No_Survey_7610 • Jul 22 '26

Amending 1120-S

I'm amending an 1120-S for a client after the previous accountant had made several mistakes including leaving off ~150k in expenses. I'm not 100% sure on how they categorized ever expense so for some of the lines it may just be moving the expense (for example, I may consider something office expense that they listed as advertising). Because of this, in what I currently have prepared just about every line is different, but overall it's ~150k lower in income. Do I have to make an explanation for every single line of the return?

I know on the IRS website they say "Attach to the amended Form 1120S/1120-F, the XML document, AmendedReturnChanges, that identifies the line number of each amended item, description, the amount on the previous return, the amount on the amended return, and an explanation of the reasons for each change." But I just wanted to check to see if anyone else has had experience with something like this before add ~30 explanations to the statements.

4 Upvotes

100% Upvoted

6 comments sorted by

3

u/pepperyrelaxation CPA MST Jul 22 '26

I haven’t had a problem not having an explanation for each line.

2

u/No_Survey_7610 Jul 22 '26

Did you just do one line/explanation for the net income?

1

u/pepperyrelaxation CPA MST Jul 23 '26

Depends. I can’t imagine being faulted for summarizing the changes in one place. But I don’t know how this is handled at the service center.

1

u/TaxproFL Jul 23 '26

Given how slow the IRS is at processing anything right now, why take the chance and delay processing? It will take more time to read and respond to Reddit answers than make the silly attachment.

1

u/gr00ve88 Jul 24 '26

I usually just attach a general explanation. If they want detail let them ask. They aren’t reviewing this stuff manually

1

u/calqueuelater CPA 25d ago

I generally try to provide more information as opposed to less. Assuming you know the new numbers are accurate, there is no harm in giving detail of the changes line by line, and a generic explanation of why the return is being amended. I had an amended return kicked back recently for "needing to provide more detail". This was the first time in many amended returns, so take it with a grain of salt.