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Old 04-14-2005, 04:31 PM
effi
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Default Re: Amended Return for mileage an audit red flag??

"Sophie Borodin" <s_borodin[at]yahoo.com> wrote:

- quote -

> 2003 was my first year with my home business. I couldn't
> find my oil change receipts and didn't keep the best mileage
> log. I overestimated actual miles driven by about 1,000. (I
> only kept track of business trips, not commuting or my
> year-end mileage total.) My commuting/business mileage
> reported was essentially right - the only problem is my
> first oil change in 2004 shows fewer miles on my car than I
> claimed on my 2003 return. I have receipts to back up the
> business miles I drove in 2003.
> Since this is the only number that was wrong on my 2003
> return, should I file an amended return to get the numbers
> to line up right in case of an audit, or just leave it
> alone? I'm afraid of triggering an audit.


materiality (see material* below)

you didn't mention the deduction or bottom line tax dollars
effect of your issues

seems the internal revenue code doesn't require a perfectly
accurate tax return be filed, but rather a reasonably
accurate return be filed

an amended return in and of itself does not trigger an audit
simply because it is an amended return, assuming everything
is properly reported on it and supported/substantiated as
necessary it shouldn't trigger an audit

if yours is merely a timing issue between two years of equal
or about equal amounts, not that it will apply to you, but
in the past irs revenue agents examining returns have been
known to leave timing errors between years alone if the
bottom line effect of the change is minimal*

your goals now may be to find out if:
- the amounts are *material
- and if the bottom line effect would be *minimal

your goals may be best met by consulting with a professional

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Old 04-14-2005, 04:31 PM
TaxSrv
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Posts: n/a
Default Re: Amended Return for mileage an audit red flag??

"Sophie Borodin" wrote:

- quote -

> ...
> Since this is the only number that was wrong on my 2003
> return, should I file an amended return to get the numbers
> to line up right in case of an audit, or just leave it
> alone? I'm afraid of triggering an audit.


Amended returns are essentially random, and random audits
are known to IRS to be unproductive. So, in most cases,
they don't even look at your original return to see if
there's something of interest there. What you describe for
the amended items should raise no question.

Fred F.

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  #-1  
Old 04-13-2005, 05:54 PM
Sophie Borodin
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Posts: n/a
Default Amended Return for mileage an audit red flag??

2003 was my first year with my home business. I couldn't
find my oil change receipts and didn't keep the best mileage
log. I overestimated actual miles driven by about 1,000. (I
only kept track of business trips, not commuting or my
year-end mileage total.) My commuting/business mileage
reported was essentially right - the only problem is my
first oil change in 2004 shows fewer miles on my car than I
claimed on my 2003 return. I have receipts to back up the
business miles I drove in 2003.

Since this is the only number that was wrong on my 2003
return, should I file an amended return to get the numbers
to line up right in case of an audit, or just leave it
alone? I'm afraid of triggering an audit.

Any advice would be appreciated.

Thanks,
Sophie

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->
 

Tags
amended, audit, flag, mileage, red, return
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