Audit Misconception #4

"I made an error on my tax return, but I'm afraid to amend it because I may be audited."

When an amended return is received at the service center it is associated with the original return and reviewed for completeness, validity, timely filing, and a determination if the issues in the claim involve an audit matter.

The service center will process an adjustment without referral to the Examination Division if the claim involves a mathematical or processing error, the inclusion of a previously omitted item, or similar errors. An evaluation is made of all the documents in the case, and if enough information is available to reasonably accept the claim, or if the claim is not worthy of an audit, it will be accepted. The basic rule is that if the item on the claim would not have questioned on the original return, it won't be questioned on the claim.

Exceptions involve large dollar claims for refund (based on district policy), previously audited issues, and redeterminations of tax based on an interpretation of the tax law inconsistent with Service policies; it is these situations that may mean an automatic audit of the issues presented on the amended return.

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© 1986, 1998 to 2002, Jack Warren Wade, Jr.