Being Audited

• If you have made a mistake on you taxes, the best thing for you to do is to correct the mistake as soon as possible. While it is true that submitting an amended tax return can increase your chance of being audited by the Internal Revenue Service, since it has more than one opportunity to review your file, this usually happens only for those returns submitted without sufficient supporting paperwork. Submitting an amended filing with adequate justification and supporting documents should neither increase or decrease your chances of being audited.
  
  

Form 1040X

• The most common mistakes that people make on their tax returns involve missed deductions, late or corrected W-2 or 1099 forms and or a general misinterpretation of tax laws. To correct these omissions you can submit a 1040X form. The form is easy to use and includes three columns, one for all originally reported numbers, another for the total change in reported values, and a final column for newly reported numbers. The appropriate supporting documentation should also be included and the field on the back of the form is required to explain all adjustments.
  
  

Limitations

• To amend a federal tax return you must either do so within three years of the year in which you submitted that year's return, or within 2 years of the year that taxes were paid, whichever is later. You must file 1040X form to amend a 1040, 1040A or 1040EZ. Even if the original returns were filed electronically, the amended 1040X can only be submitted in paper format, and must include relevant supporting documents.
  
  

Other Corrections

• Sometimes more than one corrected form needs to be submitted. If this is the case, you need to submit a 1040X for each year's return that is being corrected, and submit each one in a separate mailed envelope to your local Internal Revenue Service campus. In addition, if you are filing in order to claim an additional refund check you should wait until you receive the original refund before filing, however, you can spend the first check while awaiting the additional funds.