I just got a corrected 1099B

(3) sounds like what I would do on my own return.

So, everyone here agree with (3)? It was my first choice also, unless the IRS detects the discrepancy and audits; but that is probably unlikely.

If they audit you can then reply with the 1040-X.

SNIPPED

If they audit you can then reply with the 1040-X.

Actually, you CANNOT reply to an IRS notice with an amended return. Once the IRS starts the audit they must complete it, even if the net result is the same.

Gene E. Utterback, EA, RFC, ABA

what does this mean? You don't need to file the 1040-X, but just concede the IRS's position, and then you are done?

If they audit you can then reply with the 1040-X.

---------------------- WRONG! The amended return will be rejected by service-center processing and sent UNPROCESSED to the examining agent (who hopefully will still have an open audit).

Once notified of an audit, your ONLY choices are to notify the examining agent of any change(s) you want or wait until all examination processing completes. However, an amended return after an examination not based on a future year's carryback is 90% likely to trigger an additional examination.

Maybe an AUR unit examination is not an audit, but I had one in March that got a little involved.

The cause was missing income, where TP forgot to give me some

But that opened the door to TP discovering a few more Sch C expenses, and the higher overall AGI produced higher Schdule A deductions for Sales Tax and for 50% limited charitable deduction. Also even though there were Qualifing dividends and long term gains correctly reported, IRS "forgot" about the QD & LTCG worksheet when calculating tax.

I was actually able to reach the AUR rep working this one, and began explaining each of the changes in gory detail. In the middle he said Stop: Send me an amended return marked "For use with CP2000" and explain all this in detail. I did, had TP snd a check for the amount owed including interest, and got an OK in less than a month.

Maybe what you meant was don't just willy nilly send in a 1040X, without marking it in some special way. And if marked send it to the campus reviewing it.

Maybe an AUR unit examination is not an audit, but I had one in March that got a little involved.

The cause was missing income, where TP forgot to give me some

But that opened the door to TP discovering a few more Sch C expenses, and the higher overall AGI produced higher Schdule A deductions for Sales Tax and for 50% limited charitable deduction. Also even though there were Qualifing dividends and long term gains correctly reported, IRS "forgot" about the QD & LTCG worksheet when calculating tax.

I was actually able to reach the AUR rep working this one, and began explaining each of the changes in gory detail. In the middle he said Stop: Send me an amended return marked "For use with CP2000" and explain all this in detail. I did, had TP snd a check for the amount owed including interest, and got an OK in less than a month.

Maybe what you meant was don't just willy nilly send in a 1040X, without marking it in some special way. And if marked send it to the campus reviewing it. ===== You followed the orders/request of the examining agent in the above case. Of course, if he ASKS you to complete the document to inform him of your changes, you do that. However, that is NOT standard procedure in the IRM for examinations. In audits, ALL changes go onto the audit report.

You are correct in that my point was that a taxpayer does not go behind the examiner's back by sending a 1040X to a service center.

But getting back to my question. Is #3, putting the correct carry forward on next year's return, the preferred action?

I'd vote for that.