I just got audited for 2006 tax return, it turns out i owe some $$ in the process of checking 06 ...

Question

i learned that i overstated my cap gains for 07, i reported a gain of 1800, but in actuality i lost about 1500... can i do anything about this??? i am going to speak with an auditor from IRS should I mention this??

Answer 1

File an amended tax return (Form 1040X) for 2007.  And processing of form 1040X takes 8-12 weeks to process and at this time it is taking up to 16 weeks to process.

Answer 2

Just file an amended 2007 return using Form 1040-X.

Don't bother the auditor about this.  You do NOT want him to start poking around your 2007 return!

Answer 3

Pay the 2006 tax and file an amendment for 2007.  I would not discuss the 2007 issue with the auditor as they can't do anything about it until you file the amended return.