Even after the IRS has denied that submitting an amended tax return will trigger an audit, people are still just as cautious. However, if you failed to report all your income or took deductions you were not entitled to take, you must submit the amendment. Since there has been some sort of error, you can guarantee your amended return will be thoroughly examined. However, it does not necessarily mean it will trigger an audit. Now, if your amended tax return has multiple errors or is questionable, this could be the one red flag that triggers an audit. Here are 4 reasons your amended tax return may trigger an audit. 

Tax ReturnAmending Tax Returns Asking For Money Back

Remember, the goal of the IRS is to raise money. They do not want to hand you your hard earned money back. So, if you amend a return that is in your favor, the IRS is definitely going through your amended return with a fine toothcomb. One thing that may help minimize that is to apply the return to your current year’s taxes, or in other words your next year’s tax payments. This may help you keep a low profile.

Submitting Multiple Tax Return Amendments At Once

If you believe you have valid reasons to submit amendments in your favor, be cautious. As long as you have the proper documentation, you should be ok. Telling the IRS that they owe you money on multiple tax years is a red flag and can cause an audit. Instead of sending multiple amendments at once, and cause confusion, send each amended return separately. Send each to the appropriate IRS campus as well.

Amended Returns Stating That You Owe More Money

Assuming your amended return shows you actually owe more money than you paid, you must pay additional interest on top of that. You could be liable as well for other penalties. The IRS will not account for you being honest. The interest will be calculated back to the original return, not the amended one. If your taxes owed are steep, they may wonder about past returns, and hence, an audit occurs.

The IRS has Statues of Limitations

The IRS has three years of which they can audit your tax return. Let’s say you submit an amended return within 60 days of your statute of limitations expiration date and your taxes are increased. The IRS has just 60 days after they have received the amended return to assess it. If they miss that window, you have actually beaten the system. There is a lot of confusion on the limitations, so you must consult with an IRS audit attorney to ensure you know your rights.

If you have found you could be entitled to a small refund, you must decide if it is indeed worth it. You are not penalized if the IRS owes you, just the other way around. So trying to get one over on them could be a high cost to pay if there is anything questionable in your past returns.