I have a new client that needs his 06 ,07, 08 returns amended. He went to a new tax pro in 08 (not me) and he amended 05, 06 and 07, thinking the previous preparer didn't know what he was doing. I have already 2nd amended the 05, and am presently working on the 06. Lots of different figures I am finding. The 1st return, I've found several mistakes, the amended return was done exactly the same but added $10,000 worth of depreciation that I can't find (didn't put in a 4562)). Now my 2nd amended hopefully will be more correct. What are the chances of this client being audited? Better because of the second amended? It's driving me crazy. I was hoping to take some time off, but client is sitting on a check we don't know whether he should cash or not.
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I can only offer my experience
But I've yet to have an amend I've prepared audited even if it was the second amend on the return. I have seen amended returns audited but they were from tax protestor groups not legitimate preparers.In other words, a democratic government is the only one in which those who vote for a tax can escape the obligation to pay it.
Alexis de Tocqueville -
I've had questions from IRS regarding re-amended forms, but no audits and nothing hard to deal with.Last edited by BHoffman; 05-06-2009, 11:49 AM.Comment
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I have gone over this return, and found lots of mistakes. Income is going down and there will be a big refund. I am checking with the tax payer, I wish I could consult with the first taxpro, but maybe that's not appropriate. I'm just wondering where he got some of his figures relating to income. I know if it is wrong, it needs to be amended, but will getting back approx $14,000 raise a red flag. I guess I need to make sure all my figures are correct. Should I write a very detailed explanation on the changes? Would that help?Comment
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old adage
applies here. "Never complain; never explain."Originally posted by JenMO View Post
A detailed explanation would only draw attention to the issue, something a 1040x processor
doesn't want to deal with.ChEAr$,
Harlan Lunsford, EA n LAComment
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I agree with Harlan. I never offer any information or explanations of any kind not specifically required on a return or an amended return. After all, if they have questions, they have your client's address."The only function of economic forecasting is to make astrology look respectful" - John Kenneth GalbraithComment
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Snow them
I take the opposite approach. I bombard the IRS wilth all kinds of details with an amended return with a big refund. Once I had a client who got $30,000 back on an amended return. I gave the IRS so much detail that I'm sure they threw up their hands and sent them the $ 30,000 to avoid any more information to wade through.Comment
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Yes, that is the counter-argument. But I don't think they're easily snowed and they might just see through the "baffle 'em with BS" approach. Most of the time, the person processing the return just wants to get it off their desk and move on to the next project. Too much supporting detail gives their boss another opportunity to raise questions since the info is right there at hand. I still subscribe to the theory that if you give them extra information, one little piece of it might just be the bullet they use to shoot you.Last edited by JohnH; 05-06-2009, 12:59 PM."The only function of economic forecasting is to make astrology look respectful" - John Kenneth GalbraithComment
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Let me emend
my previous reply just a tad.
Some explanation is required over on page 2 of the 1040x, referenced by line number
on page one of the changes. My point was too much explanation is overkill and tends
to confuse the minions of IRS.
(Yes, it's "emend" , and not 'amend.")
-Amen!ChEAr$,
Harlan Lunsford, EA n LAComment
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Yes, we're amenable to your emendment."The only function of economic forecasting is to make astrology look respectful" - John Kenneth GalbraithComment
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