Does Filing an Amended Return Trigger an Audit?

Filing an amended return does not trigger an audit. The IRS website specifically notes that all returns, including amended returns, go through a screening process that identifies tax returns for further review by an auditor. An amended return may be selected for audit as it goes through the normal screening process but simply filing an amended return does not affect the selection process of the original return. As a result, if you did make mistakes on your tax return, you should amend it. If you have already been notified of an audit, you should contact a tax attorney for assistance unless it’s a minor issue or one that is easily rectified on your own.

How Do You File an Amended Tax Return?

You can file an amended return using IRS Form 1040-X.

What Triggers an Audit?

The IRS uses several methods to identify returns for audit. The first one is through computer screening. The agency’s computer system will compare your tax return to information received from employers, banks, and other sources to find mismatches. It will also conduct a statistical analysis to look for returns with figures outside national averages, such as higher-than-normal deductions for certain expenses. In addition, the IRS constantly gathers data to determine what types of problems occur most often so it can put more resources into auditing those areas.

You may also be audited because of a related audit of another taxpayer, such as a business partner or investor, or because of an informant.

How Can You Minimize the Risks of an Audit?

The most important step you can take to reduce the risk of an audit is to check your return carefully for mathematical errors and typos. In addition, if you are unsure about how to complete your tax return or whether you qualify for a tax deduction or credit, get help from a tax professional. Tax rules can be confusing and paying for help upfront is less expensive than facing an audit later.

If you discover you made a mistake, amend your return as soon as possible. As already discussed, it will not increase the risk of an audit.

Always keep careful records. In the event of an audit, you will need to provide documentation supporting what you put on your tax return.

Do You Need a Tax Attorney If You Made a Mistake on Your Tax Return?

If you haven’t received an audit notice, you can file an amended return without a tax lawyer. However, if you are unclear about how to fix your return, you should consult an accountant or tax preparer.

If you are selected for an audit, it may be helpful to consult a tax attorney for advice if it isn’t a simple error.

Our firm has extensive experience with audits. If you need assistance, contact us for a consultation.