The frequency of audits for amended tax returns varies depending on the specific circumstances of the return. Generally, amended returns that involve significant changes to income or deductions are more likely to be audited. The Internal Revenue Service (IRS) has a Compliance Factor (CF) system that assigns a risk score to each return based on various factors, including the changes reported on the amended return. Returns with higher CF scores are more likely to be audited. Additionally, the IRS may conduct audits based on specific criteria, such as if the amended return includes a claim for a large refund or if it involves a complex or unusual tax issue.

Audit Rates for Amended Returns

The IRS audits a small percentage of amended tax returns, but the rates are higher than for original returns.

• Less than 1% of original returns are audited by the IRS.
• About 2% of amended returns are audited by the IRS.

The higher audit rate for amended returns is because the IRS wants to make sure that taxpayers are reporting all of their income and deductions correctly. When you amend a return, you are making changes to your original return. This means that the IRS will want to review your amended return to make sure that the changes you made are correct.

There are a number of factors that can increase your chances of being audited when you file an amended return. These factors include:

• Making significant changes to your original return
• Claiming a large refund
• Reporting a loss
• Being audited for your original return

If you are concerned about being audited, you should carefully review your amended return before you file it. You should also make sure that you have all of the necessary documentation to support the changes you made to your original return.

Type of Return	Audit Rate
Original Return	Less than 1%
Amended Return	About 2%

Factors Influencing Audit Selection for Amended Returns

The IRS uses a variety of factors to determine which amended returns to audit. These factors include:

• The amount of the amended refund or additional tax due
• The type of amendment
• The taxpayer’s prior audit history
• The presence of any suspicious items on the amended return

The IRS is more likely to audit amended returns that involve large refunds or additional tax due. The type of amendment can also affect the likelihood of an audit. For example, the IRS is more likely to audit amended returns that claim a refund of the Earned Income Tax Credit (EITC) or that add or change deductions for business expenses.

The taxpayer’s prior audit history can also affect the likelihood of an audit. The IRS is more likely to audit amended returns filed by taxpayers who have been audited in the past. Finally, the presence of any suspicious items on the amended return can also increase the likelihood of an audit. For example, the IRS is more likely to audit amended returns that contain:

• Unreported income
• Excessive deductions
• Frivolous claims

The following table provides a summary of the factors that the IRS considers when selecting amended returns for audit:

Factor	Effect on Audit Likelihood
Amount of refund or additional tax due	The larger the refund or additional tax due, the more likely the return will be audited.
Type of amendment	The IRS is more likely to audit amended returns that claim a refund of the EITC or that add or change deductions for business expenses.
Taxpayer’s prior audit history	The IRS is more likely to audit amended returns filed by taxpayers who have been audited in the past.
Presence of suspicious items on the amended return	The presence of any suspicious items on the amended return can increase the likelihood of an audit.

How Often Are Amended Tax Returns Audited?

The Internal Revenue Service (IRS) audits amended tax returns less often than original returns. The IRS has stated that it audits about 1% of all individual tax returns and 2% of amended individual tax returns.

Common Reasons for Amending Tax Returns

• To correct errors or omissions on the original return
• To claim additional deductions or credits
• To change filing status
• To report changes in income or other financial information
• To correct a math error
• To claim a refund
• To report a change in marital status
• To report the sale of a home
• To report the birth or adoption of a child

Type of Return	Audit Rate
Original Individual Return	1%
Amended Individual Return	2%
Original Corporation Return	2%
Amended Corporation Return	3%

Tips to Minimize Audit Risk for Amended Returns

An amended tax return is one that corrects an error on a previously filed return. While amended returns are generally not more likely to be audited than original returns, there are some things you can do to minimize your audit risk.

• File your amended return as soon as possible after you discover the error.
• Be complete and accurate in filling out your amended return.
• Include necessary documentation, such as copies of receipts or bank statements, to support your changes.
• If you are making significant changes to your return, consider consulting with a tax professional.
• If your amended return is complex or relates to an issue that is under examination by the IRS, it may be more likely to be audited.

Audit Rate for Amended Returns	2020	2021
Individual returns	0.5%	0.4%
Business returns	0.9%	0.8%

Well, there you have it, folks! Now you have a better understanding of how often amended tax returns get audited. Remember, honesty is always the best policy when it comes to taxes. If you ever have any doubts or questions, don’t hesitate to reach out to a tax professional. They can help ensure you’re doing everything correctly and avoid any potential audits. Thanks for reading, and feel free to stop by again for more tax-related information and insights.