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Cassandra, Tax Preparer
Category: Tax
Satisfied Customers: 306
Experience:  8yrs experience in taxation for individuals. CTEC Registered and an Authorized E-filer with the IRS
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my 05 sch c was selected for audit i made a serious error ...

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my 05 sch c was selected for audit i made a serious error with this sch c - i was suffering from hemiplegic migraines starting 3/06 (symptoms mimic heart attack, stroke) and mistakely prepared the sch c from partial business operations (about 1/2 of total operations) the additional tax liability could be approaching $10,000 i paid $7,500 with the return - the irs opened 06 and i prepared a proposed return with $300 additional tax - the irs open 07 and i have not started this return yet (preliminary results show it is ok) - my question is am i in criminal trouble for 05????? - stressed out in phx, az
Submitted: 8 years ago.
Category: Tax
Expert:  Cassandra replied 8 years ago.
No you will not face criminal charges as long as you did not purposely try to defraud the state and IRS. I have personally attended Audits, with clients who claimed too much mileage. He agreed to the purposed changes, and in fact, prior to going in, we did another return and changed all the numbers to more accurate mileage. He did end up owing more plus had penalties and interest.

Basically, As long as you did not do this intentionally and just made a plain mistake, then everything will be fine, you are in no legal criminal trouble. You will end up owing plus they will add in penalties and interest. I would highly recommend redoing that tax return prior to going in for the audit? Either have someone represent you or read about auditing in general.

Here is a link to more information on audits.
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