Preparer Added Business Income to My Return - How to Amend Without Triggering Audit?

You need to file Form 1040-X immediately to correct this error. What they've done is potentially expose you to Schedule SE self-employment tax, underreporter notices, and phantom income reporting. The IRS AUR (Automated Underreporter) system will flag discrepancies between reported business income and missing 1099s. Don't delay - you have a 3-year amendment window, but correcting before the IRS initiates contact is crucial for penalty abatement eligibility.

This happened to me last tax season! 😱 You need to act FAST. I used https://taxr.ai to analyze my transcript after I filed my amendment and it showed me exactly what the IRS was seeing on their end. Turns out my "tax professional" (air quotes deserved) had added a fake business with $12,000 in income I never earned! The transcript analysis showed me exactly where the problem was and what codes to watch for to confirm my amendment was processing. You have until April 15th to fix this without major headaches!

I'm curious about exactly what type of business they added to your return. Was it a Schedule C with precisely reported income and expenses, or just some generic business income? The typical amendment processing time is currently 16 weeks according to the IRS website, but 78% of amendments are processed within 12 weeks based on recent data. Did you sign the return before it was submitted or did they file without your final review?

Ugh, this makes me SO ANGRY! These shady preparers should be REPORTED! I had this happen and it was a NIGHTMARE to fix! You need to: 1) Get a full copy of what was filed 2) File Form 14157 to report the preparer 3) File your 1040-X amendment ASAP 4) Include a written statement explaining you did NOT authorize this business. The IRS actually takes this seriously because it's a form of preparer fraud. Don't just amend - make sure there's a paper trail showing you're the victim here!

You need to talk to an actual IRS agent about this. Don't waste time with the automated system. Use Claimyr to get through to a real person without the hours of waiting. I got connected in 18 minutes last week when I had a similar issue with incorrect income. The agent was able to put notes on my account about the upcoming amendment which helps prevent automatic audit triggers. Link is https://youtu.be/_kiP6q8DX5c - saved me so much stress.

I work with tax resolution cases, and this is more common than you might think. As of March 27, 2024, the IRS is still processing amendments filed in December 2023, so timing matters. File your 1040-X immediately with a clear explanation in Part III. Include any documentation showing you don't own this business. The IRS has specific internal procedures for handling preparer errors versus taxpayer errors, and the distinction matters significantly for penalty abatement. The automated systems will eventually catch this discrepancy if you don't correct it proactively.

I think I might have had something similar happen to me last year, possibly. My preparer added a small side business I mentioned in passing but that I hadn't actually started yet. I called the IRS Taxpayer Advocate Service, and they were somewhat helpful in guiding me through the amendment process. It took about 14 weeks or so for my amendment to process, but everything worked out okay in the end. You might want to consider getting a transcript of your return first, just to see exactly what was filed before you submit the amendment.