How A Tax Attorney Can Get You Out Of An IRS Audit

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If you are faced with an IRS audit you should seriously consider hiring an experienced tax attorney to represent you and pursue an effective strategy to obtain the best possible outcome. There are certain IRS policies and tax procedures that if argued appropriately could result in your audit being terminated before it ever gets started. Some of the things that an experienced tax attorney will consider:

IRS Policy To Avoid Repetitive Examinations

An initial consideration is whether the taxpayer’s audit violates the IRS’s policy against repetitive examinations. The policy against repetitive examinations applies when the taxpayer has been audited in the past two years, and the audits resulted in essentially no change. By showing that the requirements of the repetitive examinations policy are met, the audit can be resolved and closed at this very early stage.

IRS Policy To Avoid Reopening Examinations

The IRS generally does not reopen closed cases but this can occur in rare cases and under very limited circumstances. If the IRS tries to reopen a closed case, an experienced tax attorney would ensure that the IRS is following its own procedures and regulations regarding to reopening closed IRS examinations and seek to show that these own procedures and regulations when applied to your case do not warrant that the IRS audit be reopened.

Statutes of Limitation Applying to IRS Audits

Generally, the IRS can include returns filed within the last three years in an audit. However, there are provisions in the tax code that allow the IRS to expand an audit to include additional tax years if the examination reveals a need to look into the taxpayer’s tax situation in previous years. At the same time, this right of the IRS to examine additional years but be tempered by an opposing requirement that the examination of the taxpayer’s tax return be reasonable. Internal Revenue Code section 7605(b) states that only one inspection shall be made of a taxpayer’s books of account for each taxable year. IRC Sec. 7605(b) also provides that no taxpayer shall be subjected to unnecessary examinations or investigations of his or her tax liability.

Formulating an Audit Strategy

If the three rules above do not apply to your case and an IRS audit is going to take place, it is imperative to promptly devise a strategy for dealing with specifics of the examination and communicating with IRS personnel. An experienced tax attorney will initially evaluate your situation and identify any potential weaknesses or exposure points. With regard to exposure points and weaknesses, your tax lawyer would then develop a strategy for handling those sensitive and vulnerable aspects of your tax situation. From the taxpayer’s perspective, a realistic attitude and outlook must be established, including the consideration of possible settlement of the audit with the IRS at some point down the road. Your tax lawyer should also discuss the possibility of tax litigation and prepare potential issues with an eye toward eventual litigation in Tax Court. Often times the best results can be achieved at the appellate level, but only if the appellate officer believes that you will go to Tax Court if necessary to achieve the best result.

What should you do?

Tax problems are usually a serious matter and must be handled appropriately so it’s important to that you’ve hired the best lawyer for your particular situation. The tax attorneys at the Law Offices Of Jeffrey B. Kahn, P.C. located in Los Angeles, San Diego, San Francisco and elsewhere in California are highly skilled in handling tax matters and can effectively represent at all levels with the IRS and State Tax Agencies including criminal tax investigations and attempted prosecutions, undisclosed foreign bank accounts and other foreign assets, and unreported foreign income.

Description: Let the tax attorneys of the Law Offices Of Jeffrey B. Kahn, P.C. resolve your IRS tax problems to allow you to have a fresh start.

What An IRS Agent In A Civil Tax Audit Considers Before Referring You For Criminal Investigation

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IRS auditors are trained to spot common types of deception and attempts to defraud the Federal government. Any of these acts are called “Badges Of Fraud”. Now the IRS in an audit expects to find a few errors on a tax return and I would agree that a little bit of fudging here or there is not going to send a taxpayer to jail—it might not even raise an eyebrow. But during the course of the audit, errors will be corrected, deductions will be disallowed, unreported income added, and a new tax liability will arise possibly including a few penalties as well as interest.

 

But some taxpayers go too far. Their tax returns read like a fiction novel. Therefore, IRS auditors have been trained to spot hot issues common with of dishonest taxpayers.  Here are the major Badges Of Fraud auditors look for during the course of an examination:

Unreported Income.

When it comes to income, the auditor asks for all of your bank statements from all accounts. The auditor will match bank deposits to income declared on the tax return. If you have bank deposits from unexplained sources, you can be sure that the auditor will question this. The auditor will also look for concealment of bank accounts, brokerage accounts and other property. The auditor will also check for an excess of personal expenditures. For example, if you are spending $100,000 per year and only making $50,000 per year, the auditor will believe you are omitting an entire income stream from your tax return. The auditor will also check out internal information compiled by other departments of the IRS such as the IRS department which organizes data received from foreign banks to detect whether you have unreported foreign bank accounts.

Overstated Deductions.

If you fudge in the area of expenses or deductions, it could be explained as simply making a best estimate rather than totaling receipts. But if there is a substantial overstatement of deductions, it will set off alarms. Some taxpayers attempt to deduct personal expenses as business expenses or claim fictitious deductions. This will only cause an auditor to dig deeper and possibly want to open other tax years for examination.

Self-Employed Taxpayers.

If you are self-employed, the auditor may cut the audit short if you keep a good set of books on a computerized software system or a set of books maintained by an outside bookkeeping service or accounting firm. But if you do not keep books, or the auditor discovers that you are keeping two sets of books, you will subject yourself to more scrutiny.  Other badges of fraud in this area include false entries, backdated or postdated documents and false invoices. And of course if you refuse to make records available or if your books and records don’t match income and expenses reported on the tax return you will send up a red flag. The auditor will also check for improper allocations of income. For example, a distribution of profits to fictitious partners or shareholders, or including your income or deductions in the return of a related taxpayer to optimize your own tax liability.

Questionable Transfers Of Assets.

Auditors also look for the transfer of assets for purposes of concealment or diversion of funds and/or assets by officials or trustees. They can tap into public records and your State’s Department Of Motor Vehicles (DMV) in order to discover assets you may attempt to hide.

Social Media.

Auditors have also been known to look at your activity on social media websites like Facebook and Twitter to gather information on your lifestyle and major transactions like vacations, jewelry and extravagant social celebrations which they will incorporate in a cost-of-living analysis to determine if you under-reported your income.

The penalties for criminal tax fraud are very serious. They range up to 5 years in jail, plus fines of up to $500,000, plus the costs of prosecution for each separate tax crime. Once the criminal tax case is completed CID will refer the case back to the IRS Examination Division where the taxes will be assessed, and the IRS can be expected to add on the civil tax fraud penalty, on top of any criminal tax fraud fines.

Whether and when to answer questions from the IRS, or whether to stand on your 5th Amendment rights, are questions that only a tax fraud lawyer can help you answer. Your financial well being, as well as your personal freedom may depend on the right answers. If you or your accountant even suspects that you might be subject to a criminal or civil tax fraud penalty, the experienced tax attorneys of the Law Offices Of Jeffrey B. Kahn, P.C. located in Los Angeles, San Francisco and San Diego and elsewhere in California can determine how to respond to these inquiries and formulate an effective strategy.

Description: Working with a tax attorney lawyer is the best way to assure that your freedom is protected and to minimize any additional amount you may owe to the IRS.

Top Ten Red Flags That Could Trigger An IRS Audit

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The IRS randomly selects tax returns for audit each year.

What sets off alarms at the IRS? Well for one thing it pays to keep in mind these 10 “red flags” that could increase the chance you’ll be targeted for an audit.

1. High income. The audit rate for 2011 tax returns, which was about 1.11% overall, shot to 3.93% for taxpayers with income of $200,000 or more. That’s almost one out of every 25 returns. The IRS tends to chase the “big money,” and while that’s no reason to earn less, you should realize that higher income exposes you to a greater audit risk.

2. Unreported income. The IRS computers match up the income listed on W-2 and 1099 forms with the income reported on individual returns. You’re likely to draw IRS scrutiny if you don’t report all of your taxable income or if you underreport the total, even if an omission is inadvertent. Check your tax forms to ensure the information is correct.

3. Large charitable gifts. Besides providing personal satisfaction, deductions for charitable gifts can offset highly taxed income on your return. But the IRS may become suspicious if the amount you deduct is disproportionate to your income. In particular, make sure that deductions for gifts of property are legitimate and include an independent appraisal when required.

4. Home office deductions. If you qualify, you can write off your direct costs of using part of your home as an office, plus a percentage of everyday living expenses such as property taxes, mortgage interest, utilities, phone bills, insurance, etc. But the basic rule is that you must use the office “regularly and exclusively” as your principal place of business. Simply doing work at home when your main office is elsewhere won’t cut it.

5. Rental real estate losses. Generally, “passive activity” rules prevent investors from deducting losses on rental real estate. But a special exception allows a loss deduction of up to $25,000 for “active participants,” subject to a phase-out between $100,000 and $150,000 of adjusted gross income (AGI). Another exception applies to qualified real estate professionals. The IRS may zero in on taxpayers claiming losses under either exception.

6. Travel and entertainment expenses. This is often a key audit target. IRS agents particularly look for self-employed individuals and other business owners who claim unusually large write-offs for travel and entertainment expenses and meals. Note that the tax law includes strict substantiation rules that must be followed in order to deduct any of these expenses.

7. Business use of cars. Another area ripe for abuse by taxpayers is the use of a vehicle for business purposes. The annual amount you can claim via depreciation deductions for the vehicle, based on percentage of business use, is limited by so-called “luxury car” rules. IRS agents have been trained to ferret out taxpayer records that don’t measure up. Another red flag is a claim for 100% business use of a vehicle, especially if another vehicle isn’t available for personal use.

8. Hobby losses. As a general rule, you can deduct expenses for a hobby only up to the amount of the income it produces. You normally can’t claim a loss for the activity, unless your involvement rises to a level of a bona fide business. Usually, an activity is presumed not to be a hobby if you show a profit in any three out of the past five years, but the IRS can refute this presumption.

9. Foreign bank accounts. The IRS has started clamping down on taxpayers with offshore accounts in “tax havens” in which banks do not disclose account information. Failure to report foreign income can trigger steep penalties and interest. If you have foreign bank accounts, make sure you properly report the income when you file your return.

10. Cash businesses. If you operate a small business in which you’re largely paid in cash—for example, if you own a car wash, restaurant or bar, or a hair or nail salon—the IRS is more likely to examine your return. Past history indicates that cash-heavy taxpayers may underreport their income or, in some cases, not report any income at all. Accordingly, the IRS remains on high alert.

These red flags don’t mean you should shy away from claiming the tax breaks you rightly deserve. But when the IRS knocks on your door you need to be prepared.

Description: The Law Offices Of Jeffrey B. Kahn, P.C. has helped many people minimize or avoid adjustments from IRS audits. Working with a tax attorney is the best bet for minimizing adjustments that would create liability to the IRS.

Top Questions On IRS Audits

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Many people have approached me with questions on IRS audits and so I have taken the most popular questions and laid them out in this blog with my response.

1. I received an IRS Notice informing you that your return has been selected for examination. What should I do?
The fact that your return has been selected for examination, it does not mean or imply that that you have made an error or done something dishonest. Tax returns are selected for audit in a variety of ways including random sampling. The most important thing is not to panic and instead to reach out to a tax attorney for representation. Provide us with your audit letter and the subject tax returns so we may review your situation.

2. Why should I be concerned if an audit is poorly conducted?
A poorly conducted audit can result in large additional tax adjustments and penalties and interest up to as much as 100% of the adjustment. Most local tax preparers are not equipped to represent you in an audit before the IRS. Because we focus on tax representation, we can make sure that your audit is efficiently and effectively handled and attempt to pursue an audit result with little or no additional tax assessments. We can handle everything from simply submitting missing tax documents to representing you in front of an IRS examiner. Let us do the work for you.

3. How is using a tax attorney beneficial during an audit?
Using a tax attorney to help with an audit can significantly increase your chances of getting a better outcome. Many times individuals don’t realize that audits can go both ways, you may actually end up being owed money after an audit. A tax attorney can analyze your situation and find the best approach to take in order to get the best outcome. The IRS actually prefers working with professional tax representatives because it makes their job easier and helps the process move along more efficiently, which can actually result in a more favorable decision.

4. What does your firm do for an audit representation?
Upon filing a Power Of Attorney Form with the IRS or State Tax Agency, we become the primary contact for the tax agency. You will still receive copies of all correspondence sent out by the tax agencies but you will not be receiving any calls or visits from the agent(s). In connection with the audit we will research any issues that are likely to come up, respond to the agent’s arguments by coming up with answers on your behalf, meet with the agent in person if required on your behalf, negotiate and settle taxes owed if you end up owing more money during the audit and cannot pay, and handle any unforeseen issues that may arise during the audit.

5. Why would I not want my original tax preparer to represent me in my appeal (or in my audit)?
One of the most effective defenses to the imposition of penalties and the associated interest on the penalties available to Tax Counsel, is to argue that the taxpayer relied on a tax professional in the preparation of the return at issue. This creates a potential conflict of interest between you and your original tax preparer where your interest is to protect yourself financially and your original tax preparer’s motivation may be to protect his reputation with the IRS. It therefore becomes highly unlikely that even where appropriate to do so, your original tax preparer will throw himself under the bus by admitting his errors in preparing the returns at issue for your financial benefit to his possible detriment with the IRS including the possibility of preparer penalties and detriment to his professional reputation with the IRS. No such conflict exists where you engage Tax Counsel that did not prepare the returns at issue to prosecute your Appeal.

6. How many years worth of returns are at risk during an audit?
Ordinarily, the IRS has three years from a tax return’s due date or filing date, whichever is later. However, this limitation does not apply when there is an allegation of fraud, when no return was filed, or when the taxpayer is charged with a substantial omission or concealment of items of gross income. Because an audit conducted for one tax year can trigger other tax years and can result in scrutiny of other tax deductions not originally stated in the audit letter, you should take this matter seriously and engage an experienced tax attorney to represent you.

7. What will happen if I do not respond to the taxing authorities audit notice?
Because the taxpayer has the burden of proof to prove claimed deductions, failure to respond to an audit notice usually results in the denial of these deductions leading to the charge of additional taxes along with interest and penalties. If left unchecked, an ignored audit notice and failure to pursue any appeal will result in a final assessment. Once an assessment becomes final, the IRS will start the collection process action that can eventually lead to wage garnishments, liens, levies and seizure of property.

8. What is the worst that can happen if I choose to represent myself in an audit?
Tax agents are aggressive by nature and left unchecked could potentially reach a determination that is unreasonable and inconsistent with the applicable facts and circumstances of your case or their determination may be based on erroneous applications of law. An experienced tax attorney will be able counter a tax agent’s aggressive nature, deal with the complex technical issues that arise during an audit and be an advocate on your behalf as to any factual or legal issues that arise during the examination.

Using a tax attorney to help with an audit can significantly increase your chances of getting a better outcome. Many times individuals don’t realize that audits can go both ways, you may actually end up being owed money after an audit. A tax attorney can analyze your situation and find the best approach to take in order to get the best outcome. The IRS actually prefers working with professional tax representatives because it makes their job easier and helps the process move along more efficiently, which can actually result in a more favorable decision.

Description: The Law Offices Of Jeffrey B. Kahn, P.C. has helped many people minimize or avoid adjustments from IRS audits. Working with a tax attorney is the best bet for minimizing adjustments that would create liability to the IRS.

Looking To Appeal An Audit Report To The IRS Office Of Appeals? Let us help you

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When taxpayers disagree with the findings of their IRS audits, they may usually appeal to the IRS Office Of Appeals. The IRS agent will issue a “30-day Letter” to a taxpayer, which essentially provides the taxpayer with up to 30 days to file a Tax Protest requesting his or her case be heard by an Appeals Officer.

The Office Of Appeals is independent of any other IRS office and provides a venue where disagreements concerning the application of tax law can be resolved on a fair and impartial basis for both the taxpayer and the government. The Appeals Officer will take a fresh look at the case and consider the strengths and weaknesses of the issues in your case. The advantage of appealing your IRS audit to this level provides us with the opportunity to reach a mutually acceptable settlement without expensive and time-consuming court trials.

Using a tax attorney to help with an appeal can significantly increase your chances of getting a better outcome. Many times individuals don’t realize that appeals can go both ways, you may actually end up being owed money after the appeal. A tax attorney can analyze your situation and find the best approach to take in order to get the best outcome. The IRS actually prefers working with professional tax representatives because it makes their job easier and helps the process move along more efficiently, which can actually result in a more favorable decision.

We will communicate directly with the Appeals Officer and build a persuasive case on your behalf because we know how to present your case with legal argument and tax authority. Of course, if we cannot reach agreement with the Appeals Officer, then we have the opportunity to appeal the case to the U.S. Tax Court.

Description: The Law Offices Of Jeffrey B. Kahn, P.C. has helped many people minimize or avoid adjustments from IRS appeals. Working with a tax attorney is the best bet for minimizing adjustments that would create liability to the IRS

Have you been selected for a tax audit? Let us help you

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We all dread the thought of an IRS audit or examination. Tax audits can be stressful and complicated as you must be prepared to explain the nature of your income and substantiate the expenses and deductions claimed on your tax return. If the IRS assesses additional taxes and interest, the adjustments are generally matched by the State making an already difficult situation much worse.

Using a tax attorney to help with an audit can significantly increase your chances of getting a better outcome. Many times individuals don’t realize that audits can go both ways, you may actually end up being owed money after an audit. A tax attorney can analyze your situation and find the best approach to take in order to get the best outcome. The IRS actually prefers working with professional tax representatives because it makes their job easier and helps the process move along more efficiently, which can actually result in a more favorable decision.

Upon hiring our firm we will file a Power Of Attorney Form signed by you which authorizes our representation. This will allow the following:

• Audit communications are directed to our firm and we are in direct contact with the IRS or State tax agent assigned to your audit.
• Research any issues that are likely to come up during the audit.
• Respond to the agent’s inquiries and requests for information.
• Meet with the IRS or State tax agent in person as required.
• Negotiate and settle taxes owed if you end up owing more money during the audit and cannot pay.
• Handle any unforeseen issues that may arise during the audit.
• Get your audit underway without the stress of handling it on your own.

We will communicate directly with the agent and build a persuasive case on your behalf because we know how to present your case with legal argument and tax authority. Of course, if we cannot reach agreement with the agent, then we have the opportunity to appeal the case.

Description: The Law Offices Of Jeffrey B. Kahn, P.C. has helped many people minimize or avoid adjustments from IRS audits. Working with a tax attorney is the best bet for minimizing adjustments that would create liability to the IRS.

Know What The IRS Is Looking To Attack By The Type Of Audit Being Conducted

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The IRS randomly selects tax returns for audit each year. Depending on what deductions you’ve taken and other characteristics of your tax return, your tax return can have a higher probability of being selected for an audit.

Here’s what you need to know about IRS tax audits. There are three types of audits:

Correspondence Audit: This is the least severe type of audit. It involves the IRS sending a letter in the mail requesting more information about part of a tax return. For instance, the IRS may have questions regarding charitable deductions and request you send in receipts to substantiate your deduction. If you have the receipts or information it’s generally not an issue. If your tax return is legitimate and you have the data to back up any claims on your return, you may be able to handle the situation on your own. But if you don’t have the receipts or information, then you should hire a tax representation professional dealing with the IRS because you could face fines, penalties and interest if you end up owing money.

Office Audit: If the IRS has more questions about your return, then you’ll get a letter in the mail inviting you into an IRS office for the audit. The office audit is more serious, so you should always have a tax representation professional come with you or turn over the audit representation to him. A tax representation professional can gather information in advance of the meeting and make sure it is complete so that the office audit can be wrapped up with the IRS as quickly as possible. If the IRS still needs additional records, your representative can secure additional time to supply the missing information.

Field Audit: This is the most serious type of audit and involves the IRS agent visiting you at your home or your business. The reason the field audit is more serious is the IRS agentwill ask to see other things. The agent does not want to limit the audit to particular items.While there are much fewer field audits than office or correspondence audits, I wouldn’t let any client go into a field audit without representation. It’s the most serious level of audit. If they are coming out to you, they are looking for something.

If any part of your return worries you and the IRS is breathing down your neck, you should bring in a tax representation professional to help curb any worries or fines. Taxpayers have a tendency because they have no experience dealing with the IRS to say way too much, give away too much and admit too much. You don’t want to give the agent information the agent has not asked for.

Using a tax law firm to help with an audit can significantly increase your chances of getting a better outcome. Many times individuals don’t realize that audits can go both ways, you may actually end up being owed money after an audit. A tax law firm can analyze your situation and find the best approach to take in order to get the best outcome. The IRS actually prefers working with professional tax representatives because it makes their job easier and helps the process move along more efficiently, which can actually result in a more favorable decision.

Description: The Law Offices Of Jeffrey B. Kahn, P.C. has helped many people minimize or avoid adjustments from IRS audits. Working with a tax attorney is the best bet for minimizing adjustments that would create liability to the IRS.

Your CPA who prepared your tax return which has now been selected for audit, wants to represent you – why should you decline his offer and hire a tax attorney?

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We hear this question all the time.

CPA’s prepare tax returns and there are a lot of CPA’s and other tax professionals who are great in preparing tax returns.  A taxpayer will provide them with information and tax documents and a return will be generated for filing with the IRS.  This process I refer to as “compliance”.

But a tax attorney will focus on “representation” – meaning that the cases taken on by the attorney are when the IRS is questioning a return or making other civil inquiries or even criminal inquiries of a taxpayer.

A tax attorney being familiar with the “representation” aspect knows who to speak to at IRS and how to best present your case.  The tax attorney can also devote full attention to your attention at any time since the tax attorney’s workload is not jammed like the CPA’s workload during tax season who is busy with tax return preparation and more focused over meeting filing deadlines and therefore cannot provide the needed attention to your case.

Speaking of civil and criminal inquiries, a taxpayer who engages a tax attorney also gets the benefit of attorney-client privilege.  This benefit allows that taxpayer to freely discuss with his attorney any matters or issues without the threat of these communications being disclosed to the government or anyone else.  You do not get this level of privilege when represented by non-attorneys.

But I would have to say that the biggest factor is that with the tax attorney there is no conflict of interest.  The best way to explain this is by example – if a great defense is to rely on what the tax preparer did, do you think your tax preparer will put himself under the bus to save you from the IRS – chances are not.  A tax attorney who had no involvement in the preparation of your returns can make these arguments thus truly serving your best interests.

The tax attorneys of the Law Offices Of Jeffrey B. Kahn, P.C. located in Los Angeles and California know exactly what to say and handle the IRS.  Our experience and expertise not only levels the playing field but also puts you in the driver’s seat as we take full control of resolving your tax problems.

Description: The Law Offices Of Jeffrey B. Kahn, P.C. has helped many people avoid collection action by the IRS and State tax agencies. Working with a tax attorney in Los Angeles or elsewhere in California is the best bet for reducing or eliminating the amount you owe.

The Essential Records to Have for a Tax Audit

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If you are getting ready for a tax audit, one of the most important things to do is gather and organize your tax records and receipts. There’s a good chance that you have a large amount of documents and receipts in your possession. No matter how organized you are, it can be a daunting task to collect the right pieces and make sure that you have them organized and handy for the audit conference.

The Law Offices Of Jeffrey B. Kahn, P.C.  has seen many tax audits that hinge on whether or not the taxpayer can provide proper documentation for their previous tax filings. A tax lawyer in Fairfield or elsewhere can make sure that the documentation is complete and proper.  By submitting this to your attorney in advance of the audit, your attorney can review your documentation and determine if there are any gaps that need to be addressed. This will allow you to have in in-depth conversation with your IRS audit attorney.

So what are the most essential tax records to have ahead of your audit? Here are a few must-have items:

  • Any W-2 forms from the previous year. This can include documents from full-time and part-time work, large casino and lottery winnings and more.
  • Form 1098 records from your bank or lender on mortgage interest paid from the previous year.
  • Records of any miscellaneous money you earned and reported to the IRS including work done as an independent contractor or freelancer, interest from savings accounts and stock dividends.
  • Written letters from charities confirming your monetary donations from the previous year.
  • Receipts for business expenses you claimed.

The Law Offices Of Jeffrey B. Kahn, P.C. has helped many people minimize or avoid adjustments from IRS audits. Working with a tax attorney is the best bet for minimizing adjustments that would create liability to the IRS.

Amending a Filing Will Not Trigger an Audit

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There is a common belief that if you amend your tax return, you are raising a red flag for an IRS tax lawyer to trigger a review of your return. In fact, many people won’t correct an incorrect, previously-filed

tax return because they are afraid of a potential audit. This is the wrong approach to take. The Law Offices Of Jeffrey B. Kahn, P.C. urges you to correct any errors on past tax returns in order to avoid potential problems in the future.

The reality is that you won’t trigger an audit by amending a previous tax return. If the IRS did this, it would be a major deterrent for taxpayers to correct mistakes or update previous tax filings with new information. The IRS wants people to pay the right amount in taxes and not overpay or underpay. Allowing taxpayers the chance to work with an Orange County tax lawyer to amend their previous filings makes sense for the IRS as well as taxpayers.

An amended tax filing will go through the same audit review process as any other filing. If you are concerned about how a change in your filing status might impact an audit review, make sure to provide a detailed description of why you are changing your filing status on your Form 1040X.

Not only will you not automatically trigger a tax audit by amending your tax return, you may leave yourself open to serious issues in the future if you don’t correct a tax filing. Not correcting a filing can be viewed similarly as willingly making a false tax filing and could open you up for major consequences that require a criminal tax attorney.