Does Amending Taxes Trigger an Audit? The Complete Truth About Form 1040X

Latest Facts & News

• The IRS processed over 2.8 million amended returns (Form 1040X) in 2024, with only 0.4% resulting in audits.
• Unlike original returns that are 90% e-filed, all amended returns require manual review by IRS employees.
• IRS audit rates dropped to 0.38% in 2024, the lowest in decades, even for amended returns.
• New IRS technology in 2025 allows faster processing of amended returns, reducing review time from 16 to 12 weeks.

Tax season is enough to make anyone bite their nails. If you ever find a mistake on your tax return and freeze for a second, thinking, “Wait… does amending taxes trigger an audit?” you’re not the only one. 

Many taxpayers get nervous about fixing errors because they worry the IRS will come knocking. The truth is, amending a tax return is very normal. People do it every single year. The IRS even encourages taxpayers to correct mistakes. Fixing your return doesn’t automatically mean you’ll be audited.

However, yes, sometimes an amendment can draw extra attention if certain red flags appear. That’s why you need to know how the tax amendment process really works, what to avoid, and how to keep things safe.

Understanding the Amended Tax Return Process

An amended return updates a previously filed tax year. An amended return is simply a way of correcting your tax filing. Instead of panicking over a mistake, the IRS gives you Form 1040-X. This form is the only way to officially change something on a federal tax return once you’ve already filed.

If you missed a W-2, forgot a deduction, or picked the wrong filing type, Form 1040X comes to the rescue. Laws change every year, and so do tax forms. Even grown-ups forget things, and thousands file an amendment every week.

Common Reasons for Filing Amended Returns

There are plenty of everyday reasons people file amendments. Some of the most common include:

• You got a W-2 or 1099 late and need to add income.
• You forgot a deduction or tax credit. Maybe a new baby came or education expenses popped up.
• Filing status changed for reasons such as getting married, getting divorced, or making a mistake the first time.
• You entered the wrong dependent information.
• Sometimes it’s just a math blunder, like adding wrong on the original tax form.

How Form 1040X Differs from Original Returns?

Original returns often go through e‑file systems and computer checks. Amended ones with Form 1040X always get checked by a real person. This extra look does not equal an IRS tax audit. It is part of the normal workflow.

The Form 1040X has three main columns:

1. What you originally reported.
2. The changes you’re making.
3. The new corrected numbers.

At the bottom, there’s a section called “Explanation of Changes.” This is where you tell the IRS what you fixed. It doesn’t need to be a long story; just keep it honest and simple. For example: “Added Form 1099-INT that arrived late” or “Corrected child tax credit.”

This step is key because it helps the IRS reviewer understand your correction without guessing.

Explore: Personal Finance Simplified: Tips for Effective Individual Tax Preparation from Industry Experts

Does Amending Taxes Trigger an Audit? 

Amending taxes doesn’t trigger an audit. Filing an amended return does not automatically put you on the IRS audit list. A lot of taxpayers think the moment they file Form 1040-X, the IRS is going to launch a full investigation. That’s just not how it works.

The IRS gets millions of amended returns every single year. Last year, more than 2.8 million people used Form 1040X to fix their taxes, and fewer than half a per cent got audited. Most of them get processed quietly, without a single problem. The agency knows people make mistakes. That’s why the system exists.

What IRS Officials Say About Amended Return Audits

The IRS officials say amending your return isn’t a big deal. No one gets in trouble just for correcting mistakes. Bigger problems (like lying or hiding money) are the actual red flags. 

Most audits come from computer signals or odd numbers, not from simple 1040X fixes. The IRS doesn’t have time to chase everyone. Even if you file an amendment, your chance of audit stays very low.

The Reality of the Manual Review Process

Every amended return gets a human looking at it, not a computer. That’s good news; people are better at understanding real-life problems. 

• IRS staff check to see if your explanation makes sense and if the documents match up.
• Reviewers check math, logic, and support. They confirm that changes fit the facts. They ask for more details when needed.
• Many reviews end with, “Okay, looks good.”
• Only when something seems odd (giant dollars, weird patterns, missing paperwork) does anyone dig deeper.

Red Flags That Could Increase Audit Risk in Amended Returns

Fixing a return is normal. Still, some changes draw more attention. If the IRS sees big or odd changes, staff will take a closer look. That does not mean an audit will happen. It means the IRS wants proof. Here are the common red flags.

Significant Income Changes

IRS staff pay attention if you:

• Suddenly, the report shows 25% more income than last time.
• Add lots of income from late forms.
• Have a history of under-reporting money for several years.

When income changes a lot, the IRS checks payer reports. They match what employers and banks sent. If numbers differ, the IRS may ask for proof. If you don’t have enough proofs, it may lead to an income tax audit.

Suspicious Deduction Claims

Big claims can attract attention. IRS computers and staff look for:

• Charity donations that don’t match your income.
• Huge home-office expense for a small business.
• Odd business expenses for your type of work.

If you claim big amounts, attach proof. Use receipts, bank statements, and worksheets. If you wrote off a home office, keep the square footage and the use record. 

Pattern-Based Concerns

The IRS watches patterns across years. Repeatedly making the same errors can look like carelessness or hiding. Patterns that raise concern include:

• Filing many amendments year after year.
• Waiting until the last minute to fix things (close to the 3-year deadline).
• Corrections that suggest you keep missing simple stuff or aren’t paying attention.

Read: Small Business Tax Tips and Common Mistakes

How to Safely Amend Your Tax Return Without Triggering Scrutiny?

The IRS knows mistakes happen. What matters most is how you fix them. If your amendment is clean, clear, and backed with proof, it often goes through without any issue. Here’s how to keep it safe.

Documentation Best Practices

The IRS likes to see a clear trail. If they can trace each change to a single piece of paper, your amendment makes sense and closes faster.

• Always attach proof, such as receipts, letters, or forms.
• Make your explanation short and clear in Part III of the Form 1040X.
• Save copies of everything you send.

Timing Considerations

The IRS allows you to amend within three years of filing the original return or two years after paying the tax, whichever is later. If your change gets you a refund, those deadlines are strict.

It’s smart to file as soon as you notice a mistake. Waiting until the last year of the deadline can slow things down, especially if many amendments pile up near the cutoff.

Don’t file an amendment while your original return is still being processed. Wait until you get your refund or your bill. Filing too early can confuse the system and delay both returns.

The IRS Audit Selection Process for Amended Returns

The IRS does not pick audits at random. Every return goes through a system to decide if it needs a closer look. This process applies to both original and amended returns. 

Computer Screening Systems

Every return runs through computers. These systems use special scoring methods, often called DIF (Discriminant Function System).

• DIF checks for giant changes, odd numbers, or things that don’t match your job or income bracket.
• It compares your return to others in the same income range and situation. If your numbers look very different from those of people like you, the score goes higher.
• Another tool checks for missing income. It matches what banks, employers, and other payers sent to the IRS against what you reported. If you left out a W-2 or a 1099, the system will catch it.

A high score does not mean you’ll be audited. It only means your return might go to the next stage for a human to review. Most amended returns do not reach that point.

Human Review Stages

If the computer flags something, an IRS employee may review it. This is called the classification stage. The reviewer checks your return to see if the change makes sense and if further follow-up is necessary.

At this point, the “Explanation of Changes” section on your 1040-X matters a lot. If you wrote a clear note and attached proof, the reviewer may close the file right away. If something looks off, they may send you a letter requesting more information.

Only a small number of cases get approved for audit. Even then, most audits are simple mail audits, rather than intimidating in-person visits.

Is It Bad to Amend Your Tax Return?

Some people think filing an amendment makes them look suspicious. That’s not true. The IRS itself says you should file an amended return if you find an error that changes your tax. Fixing mistakes shows you’re honest. Ignoring mistakes can cause bigger issues later, like penalties or interest.

Should I Amend My Tax Return for a Small Amount?

This depends on the situation. If the error changes your refund or the amount you owe, you should amend, even if it’s small. For example, if you forgot $200 of income and it changes your tax due, file the correction.

If the mistake doesn’t affect tax owed, you might not need to amend. But think long term. Small errors can affect state taxes, carryover credits, or future returns. When in doubt, fixing it is usually safer.

Professional vs. DIY Amendment: Impact on Audit Risk

You get a choice: file the amendment yourself or use a professional. Here’s how each path handles Form 1040-X audit risk.

Benefits of professional preparation:

• Most tax pros spot little tax issues and file perfect paperwork.
• They are aware of the “Red flags for amended returns” and how to dodge them.
• If you ever get audited, a professional can speak for you, answer questions, and fix mistakes.

DIY amendment is appropriate when

• Small errors, such as adding a missing form, credit, or basic change.
• If you have all the records handy and just need to fix math or missed income, a DIY route works.

What Happens If Your Amended Return Gets Selected for Audit?

If your amendment is selected, most audits are mail audits, where the IRS requests receipts or forms. Some may happen at an IRS office. Rarely, they come to your home or business.

Your Rights During an Amendment-Related Audit

If you get audited, you have rights:

• The right to an explanation of what the IRS wants.
• The right to use your accountant or a lawyer to help and speak for you.
• The right to IRS appeal if you believe they made an error; don’t just accept whatever they decide.

A professional tax expert can help you appeal to the IRS rightly and can improve your case without any worry. Contact Bowes and Sullivan for expert advice and steer clear of IRS audits. 

End IRS Worry With Bowes and Sullivan Tax Group

Filing an amendment doesn’t trigger an audit if you do it right. Bowes and Sullivan is the best choice for making that happen. 

We dig into your return, catch risks before the IRS does, and prepare airtight documents that smooth the process. Our team knows exactly how to explain changes so your amendment gets accepted with less stress.

With us, you get clear guidance, fewer worries, and a partner who’s handled thousands of successful amendments. Contact us now and let us make your amendment safe, simple, and stress-free.

Frequently Asked Questions

How long does the IRS have to audit an amended tax return?

The IRS gets three years from the date you file an amended return to start an audit. If fraud is spotted, that window never closes.

Can I withdraw an amended return if I’m worried about an audit?

No. Once you file it, it becomes part of your record. If you made a mistake, send additional paperworks and proofs to fix correct the issue. Avoid ignoring or hiding problems.

Do amended returns filed electronically have lower audit rates?

There’s no difference. The key factor is how accurate your records are and how complete your explanations are.

What percentage of amended returns actually get audited by the IRS?

Only 0.4% last year. The audit rate is almost none. Most amendments are routine and never spark further trouble.

Should I file multiple amendments or wait and file one comprehensive amendment?

Don’t file lots of little amendments. Wait, check everything, and send one complete fix. Tons of changes at once might set off “Red flags for amended returns” or slow things down. One full, clear amendment is better than filing many small ones.