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After completing a return using a tax software program, you review the return and notice that the calculation of Schedule CA is incorrectly calculating the
After completing a return using a tax software program, you review the return and notice that the calculation of Schedule CA is incorrectly calculating the adjustment for municipal interest and is omitting interest from State of New Jersey bonds in the additions column. You've tried to correct it but it just won't be fixed on the return. Your supervisor has mentioned that if the software has items that are not correct, to bring it to the tax return signer's attention so they can either call the software company to fix the issue or override the amount in the software. You let the tax return signer know and mark on the draft copy what the correct amount should be for Column C of Schedule CA for the interest line. You know it's important to do the return accurately, especially since omitting the amount results in a lower tax bracket for the tax payer which could result in fines and penalties if audited.
After the return is signed, you are doing the final review before submission to the FTB and you notice that it is not corrected. The signer indicates that they do not want the taxpayer to pay a higher tax since they had already communicated to the taxpayer would be receiving a refund and this change would require them to owe a little bit. The signer says that they'll just file this as is and amend the return next year when preparing next year's tax return.
Do you think amending the return next year is the correct course of action? Or should the return be corrected in this year? Why or why not?
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