Does Filing An Amended Return Trigger An Audit? | Tenenbaum Law, P.C. (2024)

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Now, let's break down the concepts mentioned in the article:

1. Amended Tax Return: An amended tax return is filed by taxpayers to correct errors or provide updated information on a previously filed tax return. Contrary to popular belief, filing an amended return does not automatically trigger an audit. Instead, all returns undergo a screening process by the IRS.

2. IRS Form 1040-X: This is the form used to file an amended tax return. If there are mistakes or changes to be made to a previously filed Form 1040, taxpayers can use Form 1040-X to correct those errors.

3. Audit Triggers:

   • Computer Screening: The IRS utilizes its sophisticated computer systems to compare tax returns against information from various sources like employers, banks, and other entities. Discrepancies or anomalies might flag a return for further review.
   • Statistical Analysis: Returns with figures that deviate significantly from national averages might be flagged for an audit.
   • Related Audit: Being associated with another taxpayer who's undergoing an audit can also put you at risk.
   • Informants: Sometimes, tips or information from informants can lead to an audit.

4. Minimizing Audit Risks:

   • Accuracy: Ensure that your tax returns are free from mathematical errors and typos.
   • Professional Help: If unsure about any aspect of your tax return, consulting with a tax professional can be beneficial.
   • Documentation: Maintain accurate records and documentation to substantiate the information provided in your tax return.

5. Consulting a Tax Attorney: While it's not mandatory to have a tax attorney when filing an amended return or facing a minor issue, their expertise becomes invaluable when dealing with complex tax matters, audits, or significant discrepancies.

6. About Tenenbaum Law, P.C.: The firm, led by Karen J. Tenenbaum, specializes in providing legal counsel to individuals and businesses facing IRS and New York State tax issues. They offer a range of services, from assisting tax non-filers and handling tax audits to offering relief in various tax matters.

In summary, the article sheds light on the intricacies of filing amended tax returns, understanding audit triggers, and the importance of professional guidance, particularly from firms like Tenenbaum Law, P.C., when navigating complex tax situations.