Does an amended tax return trigger a “red flag” with the IRS or enhance my chances of being audited?
The IRS created the amended tax return process for taxpayers to take advantage of numerous changes in tax laws and to correct errors that were made. An estimated 4.6 million people will amend their taxes in 2003. The IRS finds that approximately .5 percent of individual tax returns result in audit reviews. The chance of having a tax return randomly selected for audit review is minimal. In addition to that, when your taxes are being amended your name is taken out of the random pool until your amendment is completed reducing the days that your name can be picked at random. With the focus being on finding missed IRS accepted deductions and errors in calculations Capital Tax Recovery and AccuTax have never seen our program create an IRS audit as a result of filing an amendment, and we have never had an amendment rejected. We only look at legal standard deductions that are allowed by the tax code. And, we provide full documentation to back-up and substantiate the deductions.
