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In 2013, I had profits from trading futures contracts, and that profit was reported on Form 6781 of my 2013 tax return. In 2014, I had losses from trading futures contracts. My CPA is amending my 2013 tax return to carry back the 2014 futures loss to 2013.

Also, when my 2013 tax return was filed, no Schedule C was included. Since then I have identified some business related expenses, so I would like my CPA to amend the 2013 tax return to include a Schedule C along with the futures loss carry back.

But my CPA said that he can only amend the 2013 tax return to carry back my futures trading loss. He said that he is not allowed to include a Schedule C at the same time. He said that he could include a Schedule C in a subsequent amendment, just not the same amendment that includes the futures loss carry back.

Is it true that you cannot amend a tax return to include both a futures loss carry back and a Schedule C at the same time?

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Is it true that you cannot amend a tax return to include both a futures loss carry back and a Schedule C at the same time?

No, it is not true. You can include all the changes necessary in a single amended return, attaching statement explaining each of the changes.

However you're talking about two different kinds of changes.

Futures loss carryback is a Sec. 1212 carryback and not a correction of an error. Adding Schedule C would be a correction of an error.

I'm guessing your CPA wants to separate the two kinds to avoid the situation where the IRS refuses to accept your correction of an error and by the way also doesn't accept the Sec. 1212 carryback on the same return.

Or the CPA just wants to charge you twice for amendments.

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    Oh you mean if the amendment contains 2 changes, and they refuse to accept one of the changes, then they can't accept the other change? – void Nov 20 '15 at 18:15
  • @void exactly, if they refuse to accept the change - they refuse to accept the whole amendment. I haven't heard the IRS refusing amendments all that often, although it does happen. Usually it happens when the taxpayer is already under audit, or if the change is radical and poorly explained (and in your case the change is rather radical, so make sure you have enough documentation). – littleadv Nov 21 '15 at 3:26

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