Jan
Over the last year Matt, Ryan, and Stacie have been doing research into something called a Superseded Tax Return and the importance of them really comes about because of the way the IRS handles amended tax returns. Up until 2019 all amended returns needed to paper filed and mailed to the IRS where a human being would review the changes and then personal key those changes into a computer to complete the amendment.
After 2019 we were able to “E-File” them instead of mail them. We later learned from the IRS that even though they were E-Filed a human being was still physically typing in the changes. This process is why amended returns generally take 8 to 12 weeks to be recorded on a taxpayer’s transcript.
Enter the superseded tax return. What it allows us to do is swap out a tax return that is already on file with a newer version of that return and it bypasses the need for a human to interact with it. Instead of taking 8 to 12 weeks for the IRS to process a change this method can take about 48 hours. The caveat for using this method is that it is for returns that need amending in their original filing year up to the filing deadline for that return, generally April 15….unless an extension has been filed which gives the taxpayer(s) an extra six months to make changes along with other added benefits of penalty reduction, more time to contribute to SEP IRAs and make other beneficial filing elections.
After a lot of internal discussion the three of us determined that in order to make this advantageous option available to all of our clients the best solution is to make sure that all clients in our practice received an extension and thus preserving the ability to utilize the extra six months. So as of this year, we will be filing an extension for everyone in our practice regardless if their return is going to be completed before April 15, 2026.
Let’s make something absolutely clear: If you have a review appointment to complete your tax return before April 15, 2026, your return will be completed as scheduled just as you are used to. We are not delaying the filing of your tax returns. For our Prime Clients, those who typically send in their documents during the tax season and don’t generally have a review appointment with a preparer, it will work the exact same way.
For 98% of our client base there is absolutely nothing for you to do or fill out. As Enrolled Agents, Matt, Ryan and Stacie can file extensions on behalf of our clients without any additional forms being created. For the remaining 2%, they are our clients that we see in the off-season who typically owe money to the IRS even after an extension is filed. Those clients will receive a brief questionnaire asking about their tax year so we can advise you on how much money to send in as an extension payment to satisfy your tax liability, a process we have already been doing for the last seven years.
All of this is set to begin around January 26, 2026, when the IRS opens for E-Filing. You will receive an automated e-mail letting you know that your extension has been accepted by the IRS and you should retain that for your records. We thank you in your understanding of this new process and please remember, we wouldn’t even think about doing something if it didn’t have our client’s best interest in mind.
