One of the most common questions taxpayers ask is, “If I amend my tax return, will I be audited?”
Some taxpayers have concerns that filing an amended return may generate unwanted attention from the IRS. However, the opposite may, in fact, be true: making sure that your tax return is filed correctly, even if that means filing an amended return, is better than filing an incorrect return and hoping the IRS doesn’t notice!
So first and foremost: what is an amended tax return?
An amended tax return is simply a revised version of a previously filed tax return. The goal of an amended tax return is to update information that may have been filed incorrectly. Per the IRS website, some of these items could be “filing status, dependents, total income, deductions, or credits” and to make sure that you have either paid the appropriate amount of tax or received any refund that you have rightfully been owed. Sometimes, an amended return is filed because information was unintentionally missing from the original return filed. (For example, it is not uncommon for investment companies to issue corrected Forms 1099-DIV or 1099-B to include dividend income and stock sales that were omitted from the original forms filed). Additionally, if you do owe taxes to the IRS or your state taxing agency, filing an amendment sooner rather than later may (in certain circumstances) help reduce or even eliminate possible interest and penalties.
Second, you may be wondering if it is a difficult process to file an amended tax return. As everyone’s tax situation is different, it is hard to say – but overall, filing an amended return is typically a normal, painless process that millions of taxpayers go through every single year. As soon as you realize you may need to file an amended return, it is important to reach out to your tax preparer with the necessary information – or log onto your tax preparation software, such as TurboTax, to get the process started.
Lastly, you may be pondering what the IRS audit process is regarding amended returns. The answer is: the process is no different for an originally filed return as opposed to an amended return! Whether you believe your return was filed correctly the first time or you need to file an amendment, the IRS audit selection process remains the same. Most IRS audits and notices are generated by their computer system, which flags potential discrepancies in a tax return. So, filing an amendment due to an incorrectly filed tax return may actually prevent your tax return from being flagged and help you avoid an audit altogether.
However, whether you need to file an amendment or are confident that you filed your return correctly the first time around, there is never a guarantee that you will not receive a notice or audit from the IRS or state taxing agency. That is where TaxAudit comes in. If you are a member with us and ever receive any type of correspondence from the IRS (or your state taxing agency), we are here to help! Our team of expert tax professionals will review the notice you received, along with the tax return in question, and come up with a strategy on how to best respond to the notice. In the case that the notice is incorrect, your assigned tax professional will do all necessary tax research, submit any and all required documentation, and schedule and attend all phone calls and meetings with the IRS on your behalf. Our goal is to make sure that you have peace of mind knowing that you never have to face the IRS alone.
If you would like more information on our services or would like to get started as a customer with us, please click here or contact our amazing Customer Service Team at 800.922.8348.