A reminder about the new Schedule X April 2018 Tax News

It is not a standalone form and cannot be filed as such

Beginning in January 2018, individual filers must use the new Schedule X, California Explanation of Amended Return Changes to amend many Forms 540 for tax years 2017 and later. We will only process the Form 540X, Amended Individual Income Tax Return for tax years 2016 and prior. We discussed this new form and how to file it in the January Tax News.

You might wonder why we are bringing it up again so soon. Even though we haven’t reached the first(April 17) filing deadline for most 2017 Forms 540, we have already received a significant number of Schedule Xs amending 2017 returns.

The majority of these have been filed properly, with all of the required attachments and for 2017 tax year returns. However, we have received several paper-filed Schedules X that are either incomplete or incorrectly filed for tax years 2016 and prior. For tax years 2016 and prior, amended returns can only be paper-filed using Form 540X, Amended Individual Income Tax Return for the respective year.

For tax year 2017 and forward, Schedule X is an attachment to the 540 series. On the 540 series, check the amended box at the top right of the form to indicate that this is the amended return. Then attached Schedule X and any other required attachments. Finally sign the amended 540 series form. Please note that the 540 series form is the amended return not Schedule X.

For tax years 2016 and prior, Form 540X is the amended return. Attached a revised 540 series return and any other required attachments. Finally, sign Form 540X.

Regardless of the tax year being amended, it is important to remember to include all required attachments in order to have a complete return with either the new Schedule X or Form 540X. The new Schedule X is not a standalone form and cannot be filed as such.

Required attachments generally include:

• Federal schedules if you made a change to your federal tax return.
• Documents supporting each change, such as corrected form(s) W-2 or 1099, schedule(s) K-1, escrow statements, court documents, contracts, etc.

A refund may be denied or delayed if the changes made are not explained in sufficient detail or the required supporting documents and revised forms are not attached. Attach additional pages if needed to provide a clear, detailed explanation. Be sure to include your name and SSN or ITIN on each attachment.