Question

2018 mistake on value of physical inventory found while filing 2019 return

Forum|Forum|6 years ago
March 17, 2020
1 reply
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Hello,

Found an accounting mistake on the value of physical inventory being valued on the Retail Value not on the Cost of Goods. I have made the correction on my 2019 1040, do I need to make note the 2018 1040X is in the mail? Wait until the 1040X is received before sending in the 2019 return?

Thanks in advance

RobertG

There is no need to wait to file your 2019 return.

The IRS does not cross check for that sort of thing unless a return is selected for examination, and those selections are not done for several months after the return is processed.

The fact that there are differences between the 2018 and 2019 returns does not figure into the audit selection process. The initial selection is based solely on the 2019 return.

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