Mary has the following issue pertaining to her 2012 income

. Mary has the following issue pertaining to her 2012 income tax return. She filed the original return on 4/1/2013. On 9/15/2015, Mary amended her return to claim the additional deductions.

Will Mary get a refund?

Mary now realizes she underreported her income in 2012 by $ 2,000 (5% under reported). Can the IRS assess additional tax for the $ 2,000 additional income? Why?

Solution

answer: 1 Mary is eligible to get refund by using and filling Form 1040X.

answer: 2 Yes, the IRS can assess additional tax for the $ 2,000 additional income because there is mismatch  income reported on the federal income tax return to information obtained from Mary.