I am under audit for 2015 and 2014 (which I completed with Turbo Tax). Can I just file an amended return now instead of waiting for the auditor to complete the audit?

[Opus 17]

Probably not.  Did you already meet with the auditor?  Is this a correspondence (mail) audit?

[Carl]

You can. But I would not recommend it. (I assume this is a paper audit.) If your amendment doesn't agree "exactly" with any changes made by the IRS, then you're just inviting yet another audit. Now if this is in fact, a paper audit where you got something in the mail where the IRS is saying "this is what we changed", and you agree with it, then basically it's done. You can go ahead and amend your return to make it agree with what the IRS has already changed.

[linloraine]

It was a mail audit and I spoke with her once on the phone.  She was suppose to get back with me this week and has not done so.  I hate waiting and watching my interest and penalties grow.

[Carl]

When it comes down to it, you're gonna do what you want to do. I assume you have a name/employee number of whoever you spoke to at the IRS. More than likely with the high volume the IRS deals with, you were forgotten about 2 minutes after they hung up the phone. I'd either agree with the changes, or use the form they provided in the mail you received to dispute the changes. That way, you have it in writing. Three rules to remember when dealing with the IRS.
 - You are guilty until proven innocent
 - The burden of proof is on the accused (that's you), not the accuser
 - If it's not in writing, then it did not occur.
If whoever you spoke to did not annotate the phone conversation in your tax file, then the phone call never occurred.

[macuser_22]

Keep in mind that an amendment normally takes about 16 weeks (4 months) to process if sent to the normal address for amended returns.   If under an audit then all correspondence should be sent to the address of the audit with the case number written on it.    Amending when the IRS did not specifically instruct you to amend can cause confusion and delays for both the audit and amended return processing.

[Rick19744]

I would not recommend amending anything.  Let the audit process take its course.  Amending will only complicate things.  

The IRS volume is higher than they have the staffing to support and as a result it could take some time.  Just make sure you read what you are sent, if you don't understand it, ask if you have the ability to speak with the IRS in person again or get in touch with a tax professional who can provide some assistance.

If you missed reporting something, then as noted above, just agree to the change(s).  Generally not the end of the world, since most mistakes are not done to avoid or evade the tax laws.

[pk · Accepted solution]

As  mentioned above  very strongly suggested  that you wait till  the  audit process runs its course, because

(a) despite the  verbal explanations of the  auditor a to the issue at hand,  once the process has started, you would want it limited to only the  questioned item(s)

(b) an amended return would create a new issue -- the audit cannot be finalized till the amended return is processed and  routing it to the auditor is error prone -- thus there will be two parallel line items in your account -- will just delay the  resolution

(c) it is extremely unwise  and dangerous to volunteer information that has been requested or under review --- note that once the  auditor determines there is an error in one year, you would wnat that kept bounded to that issue and hopefully to that year -- by offering to amend implies that you knew you were at fault or it is willfull disregard of the law and so on and so forth -- they can then go check all the past years --- there is NO sunset  for fraud or willfull  dis-regard.

(d) also  you don't know for sure whether this is  just a pure line-item complaince review or something bigger -- let them open the kimono and show their deck of cards

(e) if you have filed as honestly as you could have, there is nothing to be afraid of  -- just "steady as she goes". And if it turns out that you took shortcuts, then  deal with that problem when that is proven -- show that it is was an error  ( fickle finger, understanding or ??) and not disregard for law.  Granted they will track you for a few years to make sure that you have become compliant

Good Luck