This document applies to all license types. Content last updated 1/17/2018.
There are several reasons you may need to go back and make changes, or amendments, to a filed return. Typically an amendment is filed at the request of the tax jurisdiction to correct information that did not pass validation in their system's processing. An example might be mistakes in filing, like using an invalid business entity FEIN, or adding a record to the wrong schedule.
If you discover on your own that you mistakenly submitted incorrect data (like gallon amounts), you may want to file an amendment. Each jurisdiction has their own distinct rules for amendments. Once you have confirmed with them what information you need to submit, the software can generate the file for you.
Due to their use of sequence reference numbers, ExSTARS and the state of Texas have a separate document for amending a return.
The sequence number of your original filing is always 0, and each amendment increases the sequence number by 1. An amended return cannot be created until the previous tax session has been marked as filed.
Click Tax Filing > Tax Sessions.
Click on the row of the filed session to be amended.
Verify the tax session information.
The Sequence Number indicates the sequence to be amended, not the new one you are creating.
Choose the type of file to create.
The choices may vary between jurisdictions.
The session choice may be grayed out, and not allow you to choose a different type per jurisdiction specifications.
Click the Create Amendment button.
You will see the message "Record Inserted".
Go back to the Tax Filing > Tax Sessions menu to see the new sequence.
The new sequence will be one number higher than the one you are amending.
Correct your records using import, manual entry or Query Wizard.
Importing to a sequence marked as Filed will automatically create a new sequence in that same session.
Set the taxpayer preferences to reflect whether you want the original records in the return or not.
If the jurisdiction asks you to negate records that were incorrectly entered, add those to your import file with a minus value exactly as they were originally entered.
For example, if you need to negate and correct a record for 2000 gallons, it will contain two of the same record. The first one will be exactly as it was in the original with a -2000 gallon total. The second will be the record with field corrections and the positive gallons total.
Click eFiling > eFile Creation.
In the fields, select the Jurisdiction, eFile Version and Taxpayer Session from their respective drop-down menus.
Remember that only an open sequence will appear in the dropdown, so the selections will be limited to your last open sequence in the filing period.
In the eFiling Option field, select Amendment-Corrected from the drop-down menu.
Generate the eFile as you would for the original filing.
Save and submit to the jurisdiction as normal.
Check to see if your jurisdiction has a naming requirement for amended filings.
Failure to name a file as specified by the jurisdiction may result in its rejection.
You can rename your file if needed during the creation step, or after it is saved.
Files that are transmitted within the Avalara software are named automatically.
Make the appropriate changes and upload the new import file if needed. Make sure you delete the existing transactions.
Generate a new tax return.
Create and save a new original eFile (if applicable).
There may be naming standards you need to apply to amended eFiles.
Submit the eFile according to the jurisdiction's instructions.
When you are finished, file the tax session again.
Adding previously omitted records to an accepted file is called a supplement. First, check if your jurisdiction allows late loads filing before you supplement an accepted file, and if so, include it in your current filing. Some jurisdictions do not allow any records from previously filing periods, and others – for example, the IRS – allow late loads up to 12 months. If your jurisdiction does not eFile, refer to their tax guidelines to find out how to file supplemental records.
Follow the instructions for changes requested by a tax jurisdiction, steps 1-10.
In the eFiling Option field, select Amendment-Supplemental from the drop-down menu.
If your jurisdiction requires you to also include the original records in your Taxpayer Preferences, in the Process Original field, click Yes.
Click Save and submit to the jurisdiction as normal.
Your taxpayer preferences include settings for amendments. The preferences are set to a default value, but may be changed.
The eFile Amended Schedules affects only the eFile, not the return. The PDF Amended Schedules has its own setting for the return, so what prints on the PDF won't match what you submit if the settings are different.
Click here for more information on what taxpayer preferences mean.
Click Maintenance > Taxpayer Preferences.
Filter your return in the grid.
Click your Company's Row (not Company 0).
In the the Process Amended field, select Yes from the drop-down menu (this is the system default value).
If you are preparing an amendment in which your total is off due to rounding of fractions, you will need to change the default settings of the eFile Calculation View field. Your advanced preferences dictate where the calculations are performed in the PDF Calculation View (your tax return) and/or the eFile Calculation View if you are producing an eFile to submit. Generally the overall effect is a few cents difference, especially when there are multiple corrections filed.
If you submit an eFile, in the eFile.
All: Includes schedule transactions from all sequences.
Current: Includes only current sequence schedule transactions.
Your taxpayer preferences for this return will be saved until you change them.
See the Taxpayer Preferences document if you need to set the calculation views.
Here are some example scenarios that walk you through the amending process. These are generic examples, so for your amendment you need begin by asking your jurisdiction contact what kind of file to submit, what to include in the file and when it is due. In many jurisdictions, a new tax period cannot be filed until the corrections are made to the previous filing.
In all example cases, follow your jurisdiction's guidelines for amending returns before you submit any additional files.
You have discovered that last month's submitted file contained a record that reported 100 gallons instead of 1000 gallons on a load.
Create a supplemental file for the additional 900 gallons.
The jurisdiction accepted your file, but with an error because you have used an invalid carrier FEIN on a load of 873 gallons.
Create a correction file, using the correct FEIN.
If the jurisdiction requires you to negate the errors, add a -873 (minus 873) gallon record using the bad FEIN in addition to the 873 gallon record with the good FEIN to your import file.
The jurisdiction sent you a file rejected notice and instructed you to submit a new file.
If the rejection is due to master data, such as missing taxpayer contacts, you still need to generate a new return after you have made changes, even though it does not affect your schedule transaction records.