Doing son's 2023 taxes. Just discovered unreported crypto sale in 2022 resulting in
- Needing to do amended return
- Additional CG loss carry forward (CF) to 23.
Ideally, I'd like to file amended 2022 and 2023 at the same time. But worried IRS will trigger an audit if I enter the new larger CG loss CF from the amended 2022 return into the 2023 return.
I prefer not to properly sequence the filing (file extension for 2023 to delay until 2022 amended return is processed) for 2 reasons
- IRS has been really slow on processing amended returns, could be unprocessed by 2023 extension deadline.
- Have large refund in 2023 return. Prefer to get it sooner rather than much later.
Stupid thing is neither 2022 and 2023 taxes change at all as both returns has max -$3k CG loss before and after the new 2022 CG loss CF. Only change is amount of CG loss CF in 22 and 23
Thoughts on filing these simultaneously? If risky, how do I handle 2022 amended return is not completed processing by IRS before 2023 extension deadline?
Maybe the risk of an audit based on this is low? Just go ahead and do both at the same time?
Maybe no need to file 2022 amended return? No new refund or tax liability. Just CG loss CF figures change.
