Wolf wrote:

- quote -

What will IRS do? Probably nothing, esp if your tax bracket
is 15% or lower. It's just not material to the present
day.

Next year however, since it might affect a carryover, simply
amend the return so that you'll have the correct figure for
reporting.

Happy New Year,
Harlan Lunsford, EA n LA

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In looking over my 2002 return yesterday I noticed an error
which must have been a problem with Turbo Tax because it
involves the Sched C COGS calculation from Part III not
being the same as in Part I. The difference is $311 higher
in Part I (meaning actual COGS were lower than reported and
there was additional gross income of $311). It doesn't
affect the bottom line because there was an overall loss,
but it would affect the carryover of home office expense to
2003.

What does the IRS do when they discover such an error? Will
it trigger a full fledged audit or will they just send a
letter asking for an explanation/correction? Should I file
an amended return or wait and see what happens?

Thanks much!

Wolf

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