The audit potential of Form 1040X, Amended U.S. Individual Income Tax Return is a popular topic among tax professionals. Despite many theories, there is no conclusive evidence that filing an amended tax return will trigger your return for audit.
It is believed, however, that the IRS will examine a Form 1040X (amended tax return) more thoroughly than the original tax return. It is also believed that the IRS may review the situation even more carefully if you file an amended return and are due a large refund. Although you can prepare your tax return yourself, we do recommend that you have a tax professional assist you in filing a Form 1040X due to the IRS’s extra scrutiny.
Typically, when the IRS examines your amended tax return, it is looking to see if you have the proper documentation and reasoning to back up your changes. Although the IRS does have the ability to look up some of your tax documents, it is easier and more efficient for them if you provide the information with your Form 1040X. Therefore, to make the processing of your Amendment more smooth, it is recommended that you provide sufficient documentation along with your Form 1040X.
Your tax preparer can provide you with more information regarding amendments to your income tax return. StrataTax, a San Diego consulting and tax services firm, is available year-round and will provide you with a free review of your previously filed tax returns. Our CPA and Former IRS Auditor is skilled at finding deductions and credits that other tax preparers and tax software miss. Call us at (858) 225-7720 to setup your free initial consultation or visit us at www.StrataTax.com for more information.
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