s_eubank[at]yahoo.com posted:

- quote -

To change a return for last year, you would file Form 1040X, detailing
the sections and line items of the Form to be changed, including an
explanation of the reason for the change.

Given the unusual nature of your grandfather's transaction, I visited
http://www.irs.gov, and looked up the Form T Instructions, copied below:
__________________________________________________ _

Form T: *Who Must File
Complete and attach Form T to your income tax return only if you:
** **Claim a deduction for depletion of timber,
** ***Elect under section 631(a) to treat the cutting of timber
as a sale or exchange, or
** ***Make an outright sale of timber under section 631(b).
Complete Form T in accordance with sections 194, 611, 631, and 1231, and
the related regulations.
Exceptions. * You are not required to file Form T if you only have an
occasional sale of timber (one or two sales every 3 or 4 years).
However, you must maintain adequate records of these transactions and
other timber-related activities during the year, as discussed in
Recordkeeping, below. These transactions may be treated as an investment
for tax purposes if your property is not held for use in a trade or
business.*
-------------------------------
Additional note of interest:

(Part III. *Profit or Loss from Land and Timber Sales - Form T
Outright sales of timber after December 31, 2004. * New rules under
section 631(b) allow the landowner to treat outright sales of timber
after 2004 as capital gain. The new rules extending capital gains
treatment to outright sales of timber are similar to certain disposals
of timber under a contract with a retained economic interest. However,
for outright sales, the date of disposal is not deemed to be the date
timber is cut because the owner may elect to treat the payment date as
the date of disposal. For more information, see section 631(b) and Pub.
544.
__________________________________________________ _

There is other discussion regarding possible depletion and depretiation
deductions, which might apply, depending on the extent of forest
management, reforestation activity and other expenses for your
grandfather.

It would appear that you might benefit from professional assistance,
since the capital gains treatment mentioned above could have reduced
income taxes, as well as the possibility of other expenses of
depreciation issues.

One session with an Enrolled Agent -- especially one who is well-versed
in Timber Sales -- would likely be a wise investment, as it would not
only guide you on the Form 1040x particulars, but also might provide
better guidance on alternative treatments which could result in capital
gains tax treatment or present other options for expensing and/or
depreciation.

Bill

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On my grandfather's return last year he filed form t(timber). He had
1 sale of timber, $13,000 of timber on his own property, and it has
been 7 years since the last sale of timber. In Form t instructions,
it states "You are not required to file form t if you have a single
sale of timber every 3 to 4 years but you need to keep adequate
records." Now this being said, I do not believe he had to file form t
and claim the timber as income. If I am correct, how do I go about
changing last year's return, or do I need a tax professional to do
that? He did have his taxes prepared through H & R Block, but was not
happy with his rep. Any advice would be greatly appreciated. I am
willing to do the work if a person can amend last year's return
without a tax professional.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >