business returns
do I need to amend a corporate income tax if in the balance sheet shows an incorrect amount on depreciable assets. The asset was not depreciated. In the balance sheet the assets and liabilities are understated.
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cvUAxIYaWr3QjyacfA8pyY
11/02/09 4:06pm PST
Viewed by asker 11/03/09 5:31am PST
Viewed by asker 11/03/09 5:31am PST
6 Replies
IRMN
Questions asked: 41
Questions answered: 14579
Points earned: 46299
Questions answered: 14579
Points earned: 46299
Accountant Community AllStar
Advisory council of Accountant community power users.
11/02/09 4:55pm PST
That depends. Was the amount arrived at because expenses were not properly reported or does the balance sheet contain other errors that offset the asset error?
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Mt Juliet CPA
Questions asked: 61
Questions answered: 13173
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Questions answered: 13173
Points earned: 28390
Accountant Community AllStar
Advisory council of Accountant community power users.
11/02/09 5:11pm PST
We need more information as IRMN stated. If it is just a balance sheet reclassification then the problem may not be as severe. If the assets were not properly depreciated then the problem is worse. We need additional information as to exactly what the problem you encountered is
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11/03/09 5:27am PST
The asset was not depreciated. In the balance sheet the assets and liabilities are understated.
Mt Juliet CPA
Questions asked: 61
Questions answered: 13173
Points earned: 28390
Questions answered: 13173
Points earned: 28390
Accountant Community AllStar
Advisory council of Accountant community power users.
11/03/09 2:27pm PST
You will need to correct and file an ammended return to correct the depreciation expense on the undepreciated assets that need correction
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ArchieLeach
Questions asked: 332
Questions answered: 8059
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Questions answered: 8059
Points earned: 8286
Accountant Community AllStar
Advisory council of Accountant community power users.
11/03/09 2:32pm PST
Is that a change that's going to require a Form 3115? I'm just sayin'.
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IRMN
Questions asked: 41
Questions answered: 14579
Points earned: 46299
Questions answered: 14579
Points earned: 46299
Accountant Community AllStar
Advisory council of Accountant community power users.
11/03/09 2:33pm PST
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Mt Juliet is correct about amending to correct for the depreciation error. Was the asset financed and that's why liabilities are understated or are there other errors on the return.
Wile's special this week - get a free anvil with every return prepared.
