Clerical errors and IRS Audits

[Carlinking]

Is it possible that a simple clerical error, such as accidentally leaving the relationship to a dependent wrong, can cause an audit in and of itself? (2015 taxes)

 

[FlyingRon]

Is it possible that a simple clerical error, such as accidentally leaving the relationship to a dependent wrong, can cause an audit in and of itself? (2015 taxes)

Anything is possible. The IRS doesn't even need a reason to audit you. The sampling algorithm for determining which returns are selected is a closely guarded secret.

The good news is that if it was an error all you'll likely suffer is paying what you should have paid plus some interest/penalty which isn't usually that overpowering. A relationship being wrong is only going to be a problem if the correct relationship wouldn't have qualified the person as a dependent.

Note that dependent issues more likely don't get audited, the software at the IRS just kicks out letters on those discrepancy (along with a gratuitous 1040X form) and asks you to fix it.

 

[commentator]

I agree that's what is likely to happen, I once got a 'please correct or explain' letter from them after filing the taxes with one of my dependent's social security numbers written down incorrectly. No audit, just an inquiry. Cleared it up easily, they were very helpful.

 

[LdiJ]

Is it possible that a simple clerical error, such as accidentally leaving the relationship to a dependent wrong, can cause an audit in and of itself? (2015 taxes)

That is not a small error/simple clerical error if the error caused you to receive tax credits (in particular EITC, The Child Tax Credit or the Additional Child Tax Credit). That is also the type of error that gets caught far more often than other errors.

If you just did that, and therefore have not received the refund yet, I suggest that you have an amended return done correcting the error, and plan to send the excess refund straight back to the IRS with the amended return.