Any tax experts?

[daughtersrus]

While gathering the documents needed for the 2008 tax return, my friend realized that she forgot to include one W-2G for a slot machine win that she had 12/27/07. The amount is about $1,300. She did include all of the others (about $14,000) but someone missed this one.

I know that legally she should file an amended return but now she's worried that it will trigger an audit. She has enough losses so that she wouldn't be required to pay taxes.

If she doesn't amend, the numbers that the IRS gets compared to her return are going to be off so that may trigger an audit as well.

I told her that I'd post here and see what the experts have to say.

Thanks!

 

[Cheshire Figment]

Doing an Amended Return, especially if reporting additional income, will not trigger an audit.

And if she does not amend that also will not trigger an audit. However, she will get a notice that the income reported by her on the 1040 does not match up with that provided by others. At that time they will show what changes are being made and the amount of additional taxes, penalties if applicable, and interest from the original due date of the return. She will then have the option to either sign the form agreeing to the changes and send in payment or deny the changes and provide explanation of why the information shown is not correct.

Personally I would suggest doing the amended.

Mike (CPA Retired)