Does filing an amended return trigger an audit?

July 11, 2022 by Charla Suaste

You’ve sent your tax return off to the IRS with a sigh of relief – all that document organization, prep, and input has been done!

Only...as you’re rifling through and preparing to file your tax documents – hopefully, to never be seen again – you stumble upon a W-2 stuck to the bottom of the pile. After a quick glance at the paperwork, you realize you forgot to include an entire portion of income in your tax filing.

At this point, you realize you have two options. The first is to pretend you never saw the W-2 in the first place, shove it into a filing cabinet or desk drawer, and hope the IRS doesn’t notice. The second is to amend your tax return.

But you’re concerned: won’t that draw more attention to your tax return than if you just left it alone? If the IRS notices that you filed an amended return, will that cause them to inspect your tax return more closely? Even worse, could it trigger them to turn their inspection into a full-blown tax audit?

Let’s get into it!

For starters, it is never a good idea to avoid putting information on your tax return in the hopes that the IRS might not notice. In many cases, IRS notices are computer-generated, and they are based on information received from third parties, such as employers, banks, etc. So, if you have a document, such as a 1099 or W-2, missing from your tax return, the IRS will likely be notified of this. Additionally, by the time they realize you have incorrectly filed your tax return, you may not only owe tax on the missing items but may have penalties and interest to account for as well.

Secondly, it is important to note that filing an amended return is nothing to stress about. It is an extremely common process and does not present any risk of drawing unwanted attention to your specific tax file. In fact, filing an amended return may help you avoid receiving a potential notice from the IRS in the future!

If you filed your tax return through tax preparation software, such as TurboTax, they have an easy process to walk you through the amendment. Or, if a tax professional worked with you to prepare and file your return, you will want to contact them immediately, and they will be able to assist you with the amendment process. Either way, the process is typically seamless and, once completed, will give you more peace of mind.

However, if you are still concerned about getting audited in the future – whether or not you filed an amendment – you can purchase a membership with TaxAudit so that we can support you in the event you receive a notice from the IRS or your state taxing agency. Our team of world-class tax professionals will be here to:

• Defend both state and federal income tax returns, including tax returns filed late
• Review your documentation before presenting it to the taxing authority
• Explain your options and develop a strategy
• Schedule and attend all audit appointments on your behalf
• Defend your tax return through the entire audit process
• Minimize your financial impact