Does an amended tax return trigger a “red flag” with the IRS or enhance my chances of being audited?
The IRS created the amended tax return process for taxpayers to take advantage of numerous changes in tax laws and to correct errors that were made. An estimated 3.3 million people amended their taxes in 2002. The IRS finds that approximately .5 percent of individual tax returns result in audit reviews. The chance of having a tax return randomly selected for audit review is minimal.
