July 22, 2024

“Will I be audited if I amend my tax return?” is a common question among taxpayers. Some taxpayers worry that submitting an amended return could bring the IRS’s unwanted focus. But, there might be the other way around: submitting an amended tax return in order to guarantee accuracy is better than filing an inaccurate return and hoping the IRS does not catch you. Speak to a professional for Individual tax preparation in Houston to get help. 

If you amend your taxes, how do you receive an audit?

You have submitted your taxes; however, there is an error or perhaps a lost opportunity. Now what? It is time to submit an amended tax return. Here are some essential rules and additional items to remember.

  • You do not have to make changes to your tax return.

If a taxpayer’s income surpasses a particular limit, the IRS requires them to file tax returns yearly. It goes without saying that the IRS views this criteria to be necessary. In fact, failing to file may result in a misdemeanor trial; filing a fraudulent return may end up in a felony conviction. Fortunately, though, you cannot face legal consequences for failing to file an amended tax return if you have fulfilled your initial filing requirement.

  • It is not possible to pick and choose

As previously stated, you might not have to file an amended tax return, but when you do, you have to make any necessary adjustments. No matter if the modifications increase your return or decrease your extra duty, the law prohibits you from modifying only some aspects of the deal. In general, all tax returns should be submitted as accurately and carefully as possible, to the best of your knowledge.

  • Each year should be treated individually.

Assume that submitting an amended return is needed. If so, you have to update each year, even if you are amending a return that you previously revised, by submitting a new Form 1040X.

  • Increased audit risk

In general, revised returns have a greater probability of being audited and examined than initial returns.

  • You can apply for refunds flexibly.

You have the choice to use any additional refund you receive from your amended return as a payment towards future tax bills rather than accepting the money straight away from the refund.

  • Penalties and interest are still imposed.

Penalties and interest may apply if you make adjustments when you discover that your total debt is more than what you actually owe. The worst part about these interest and penalties is that they start accruing on the date of your first return filing and apply to the difference owing on the amended tax return. Do not think you can ignore this; the IRS will figure out interest and penalties and issue you an invoice if you fail to pay the interest and penalties yourself.

Jason Isaiah

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