Can I Amend my Tax Return Online Electronically

The simple answer is “no”, but there is more to know about the “no”. Let’s walk through the basics of amending a tax return.

If you discover an error after filing your taxes, you may need to amend your tax return. You should file an amended return if there's a change in filing status, income, deductions or credits. This is a reality as receipts are lost, records jumbled or the exclamation of: “I thought you kept that record.”  It is more common than you might think to experience errors on a tax return since humans can easily misinterpret definitions of terms and expectations.

You can and should file an amended return if there is a change in filing status, income, deductions or credits.  

Please note that the IRS may have already corrected mathematical or clerical errors on a return. They also may accept returns without certain required forms or schedules. In these instances, there is no need to file an amended return, but you can contact us, and we can help you amend your return.

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Overhead Rate Audits Explained

overhead-rate-audits-explained


What is a FAR overhead rate?

Technically known as a firm's "indirect cost rate," the more familiarly known "overhead rate" is the percentage of general expenses that consultants can bill to contracting government agencies. More specifically, it is the ratio of allowable indirect costs to total allocable direct labor costs.

What does a FAR overhead rate include?

Overhead is the sum of a firm’s indirect costs. A firm’s FAR overhead rate is the ratio of indirect costs to direct labor costs, based upon provisions in the Federal Acquisition Regulation and Cost Accounting Standards.

Why do I need it audited?

Government agencies base reimbursements to firms on their audited FAR overhead rates.

What are the requirements for receiving reimbursement from a government agency?

A/E firms must prove that costs are allowable, reasonable and allocable, per the provisions for contracts with commercial organizations detailed in FAR 31.2. 

What are management's responsibilities in an overhead rate audit?

Management "bears the sole responsibility for identifying, segregating, and removing unallowable costs from all billings to Government contracts," according to the AASHTO Uniform Audit & Accounting Guide to government transportation contracts.

Where can I get more information?

The AASHTO Uniform Audit & Accounting Guide (2012 Edition) prepared by the American Association of State Highway and Transportation Officials is the leading source of information related to indirect cost rate schedules and overhead audits.

You are also welcome to contact us by phone or email.

 

Hunter & Associates
ABOUT THE AUTHOR | Hunter & Associates
At Hunter & Associates, P.A., we are driven by the belief that within each of us is the power to achieve greatness. This belief is not just for us, but for our clients as well. In fact, our client roster includes a great many small businesses with aspirations for greatness. We have even been recognized as an award-winning firm for client diversity.
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