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- 1040-X need to file for unreported cash income
1040-X need to file for unreported cash income
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HOPE2
Level 8
Monday
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Hi everyone.
A new client came to me to file Form 1040-X regarding unreported cash income for 2020, 2021, and 2022.
The cash income amounts to around $7,000 for each of those three years, and he is a driver.
I would like to know what the tax audit consequences would be if I file Form 1040-X for him.
Any help!
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TaxGuyBill
Level 15
Monday
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Are you asking about the "risk" of an audit, meaning how likely will there be an audit?
It seems unusual that the taxpayer suddenly want to add unreported income to his tax return. Did you ask WHY it was not originally reported and now WHY he wants to report it?
Will adding this income cause him to owe more tax? Or will adding this income INCREASE his refund, such as EIC, the Additional Child Tax Credit and/or the Covid sick credit?
