Am I able to amend a previous year return if I was audited and found to have a substantial understatement? I do not know how or where is but need professional help.

[tyeisha-atkinson]

I was audited this year (2022) for the 2020 tax year. The IRS is saying I understated $1,980 dollars. As a result, they are charging me additional interests for every 30 days from 2020 up to now, even though I was just audited this year. I am up to $12k just in interest charges. What can I do?

[Anonymous_ · Accepted solution]

You need to consult with a local tax professional (there may be state income tax considerations as well).

See https://taxexperts.naea.org/listing/service/tax-audits

Also, possibly legal counsel.

[Mike9241]

a local tax pro should be consulted.  however, something else is going on. the interest alone could not possibly be $12K even today. there are probably penalties included but even those can't account for owing $12K.

[tyeisha-atkinson]

You are absolutely right!! Just pulled the notice out to look at it again. It says the child care credits were decreased/removed. We are adoptive parents. While the children were still in foster care, the biological mom would still claim them because she had access to their ssn. Now I am thinking we just need to send certified documents and reach out to DFCS to get all of our paperwork. This does make me feel better since I know we have everything. By the way, she did this the first 4 years the kids were in care so I am use to it.