As we discussed in our previous article “Do Amended Returns Trigger an Audit?” an amended tax return is often scrutinized more closely by the IRS if you are due a large refund. When you are due a refund, you can elect to apply all or part of your refund to your current year’s tax. For example, you may be filing an amended tax return claiming a large refund. If you are also about to make your next estimated tax payment for your current tax year, it may be wise to direct the IRS to apply the amount of your refund to your estimated tax payments. Tax professionals believe that if you make this election, the Form 1040X will be scrutinized less by the IRS. Tax situations vary based on your unique facts and circumstances, so we recommend discussing such strategies with a tax professional.
Your tax preparer can provide you with more information regarding amended tax returns. 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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