Question

I was told by a friend that by filing an amended return audit by the IRS is more likely. Can I amend my charitable donations without increasing my risk of a audit?

Answer

 

Filing an amended return does not necessarily increase the risk of a tax audit. Because the IRS does not disclose the standards and criteria it uses when selecting tax returns for audits there is no reason to believe that there is an amended return audit policy. However, the IRS might inspect a return that includes charitable donations that seem large for the income amount. This could be the case even if the return is not an amended return.

As a general rule, when claiming charitable deductions on your tax return you should keep good and adequate records of the donations to provide proof of the donation. In the event of a tax audit you may be asked to show documentation to substantiate your donations. According to the IRS, a donor may not claim a deduction for any contribution of cash, a check, or other monetary gift unless the donor maintains a record of the contribution in the form of either a bank record (such as a cancelled check) or a written communication from the charity (such as a receipt or a letter) showing the name of the charity, the date of the contribution, and the amount of the contribution.

 

Related Topics

Related Resources

IRS Notice CP90C – Notice of Seizure and Your Right to a Hearing

Learn more about notice CP90C, why you received it, and how to handle an IRS seizure notice with help from the tax experts at H&R Block.

IRS Notice CP62 – We’ve Applied Your Payment to Your Account

Learn more about notice CP62, why you received it, and how to handle an IRS CP62 notice with help from the tax experts at H&R Block.

IRS Letter 5042 – Proposed Tax Adjustment

Learn more about IRS Letter 5042 and how to handle an inquiry of your business' income with help from the tax experts at H&R Block.

Taxes, Basketball, And Bracketology | 2017 Tax Brackets

What do 2017 federal tax brackets and March Madness have in common? The Tax Institute Director Gil Charney weighs-in. Read more from H&R Block.