tns1 wrote:
- quote -

See your tax advisor!

Whenever a client comes to me with something that would
require an amended return, I do an estimate of the effect.
If the client has a refund coming, I will only do the return
for them if the refund will exceed my fees. If it won't,
then I tell them so and leave it to them to make the
decision but I also tell them that IRS will not get upset if
they don't file.

If they will owe money on the amendment, I also tell them
that, although they may technically be required to file, IRS
will not be concerned unless the issue involves something
IRS already knows about. Then, I leave it up to them,
again.

My professional obligations only require that I inform them
of the techical requirements, which I do. The decision on
whether or not to actually file is the client's.

Lanny K. Williams, CPA
Nawarat, Williams Co., Ltd.
Income Tax Services for Expatriate Americans

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tns1 wrote:

- quote -

Thanks for all the replies. I don't actually know how much
of a refund I may get since it hasn't been looked at
professionally yet, but I can see how one amendment might
lead to 6 (fed and state), and need to weigh the benefit vs
cost of doing this. There could also be an amt trigger
waiting in there too.

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tns1 wrote:

- quote -

When I was self-employed, I use to have to amend about once
every four years. I got audited once and it was not on an
amended return. It was on Schedule C expenses and Susan had
all the receipts to support the expenses.

Two important points: ALWAYS send a CPA, an EA, or a Tax
Attorney to your audit and NEVER EVER attend the audit
personally unless served with a supeona requiring your
attendence.

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Paul A Thomas <taxman[at]negia.net> wrote:
- quote -

Also, while an original return is processed by data-entry
clerks or, if e-filed, automatically, a 1040X amended return
is looked at by a live, tax aware, IRS emoployee before
being entered into the system.

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

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"tns1" <tns1[at]cox.net> wrote:

- quote -

not enough facts given to answer your questions

amended returns are not a red flag for audit simply becuase
they are amended returns

consider hiring a professional (cpa, etc.)

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tns1 wrote:

- quote -

The consequence is that you will receive $3K from Uncle Sam
if your amended return is valid. You are only obligated to
amend your state tax return if a change in the federal
return creates an additional state tax burden. If the
change in the federal return creates a lower state tax bill,
then file the amended state return to get a refund.

--
Alan
http://taxtopics.net

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tns1 wrote:

- quote -

The consequence is that you will receive $3K from Uncle Sam
if your amended return is valid. You are only obligated to
amend your state tax return if a change in the federal
return creates an additional state tax burden. If the
change in the federal return creates a lower state tax bill,
then file the amended state return to get a refund.

--
Alan
http://taxtopics.net

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If the reason will give you a carryforward of something,
then yes, you will have to amend the other returns.

Will they look? They might - but if your return is honest,
true and correct to your knowledge as you orginally signed
it being so, why worry?

Helen, EA in PA
www.nationalmssociety.org
50 Miles for the Cure

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Right now my office is doing amendments from CP2000 letters
for 2003. (These are IRS notifications that the client's
return missed something which IRS caught; "if you agree,
pay this....if you don't, why not".) If the problem was the
client's error, we do an amended California for him, charge
something for the service, and there is normally no trouble.

If the problem was our error - well, I have often just
explained that the preparer goofed. We pay interest and
penalty. Point is - this is a normal process.

If your amendment can be backed up, say so, do any extra
forms required, and yes, amend the state and do carry
forward amendments if necessary.

I don't know how many amendments the IRS gets every year,
but if they are legitimate, you shouldn't worry. We have
NEVER had an amended return audited - in 30 years of
practice.

Nan, EA in LA

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tns1 <tns1[at]cox.net> wrote:

- quote -

No, unless the change you're making isn't on the up-and-up.

- quote -

Yes, if the item you're changing on the federal return
affects the state return as well.

- quote -

I'm not sure what you mean by this.

--
D.F. Manno
dfm2a3l0t2[at]spymac.com
"The work goes on, the cause endures, the hope still lives
and the dream will never die."

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"tns1" <tns1[at]cox.net> wrote:

- quote -

You'll have $3,000 plus interest in the bank. The interest
will be taxable income for the year in which you receive it.

- quote -

Watch out for tax advice from "some." Sure, if you file a
ludicrous amended return you'll probably get audited for
your trouble, but filing a legitimate claim isn't going to
get you audited.

- quote -

Most states require you to amend the state if you amend the
Federal. The answer to that question is in your state"s
instructions.

As for subsequent years, you need amend them only if
something on them changes because of the prior year, e.g.,
carryovers.

Phil Marti
Clarksburg, MD

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"tns1" <tns1[at]cox.net> wrote

- quote -

Your audit risk, while being extended somewhat, would depend
on the item(s) being amended.

- quote -

Most likely, yes.

- quote -

There is a carry-forward amount? What is it that you are
changing?

--
Paul A. Thomas, CPA
Athens, Georgia
taxman at negia.net

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I have considered filing an amended return for one that was
filed less than 3 years ago. For the sake of argument, lets
say I get an additional $3K from this amendment. What are
the consequences for doing this? Would I risk a much higher
chance of audit as some suggest? Would I then need to amend
the state too, and each subsequent return to carry forward
the difference?

thanks

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