Schedule C notice on Letter 12C

[DaveO]

I met with a new client yesterday. He had reported about $2000 on line 21 on a hand prepared 1040. The IRS sent him a notice suggesting that the income should be on Schedule “C” and he should either submit the “C” or explain why it didn’t belong there.

After discussing his situation I determined the income belonged on “C”. While reviewing the return I spotted a number of other issues that would affect the tax return that are maybe too numerous to explain in a reply.

If we amend the return should I just send it in where it would go absent the notice or submit it to the service center making the inquiry? Or should a send a “do not file” copy along with an explanation like I would do with a CP2000?

[WhiteOleander]

I would attach a 1040X to the notice and send it to the service center that sent the notice. They have the "file" at this point. Otherwise, the other address will have to find out where the return is and send the 1040X to them.