Hi,

Is there an audit risk to amend a return the second time to reduce business expenses?

A tax payer came to me to amend a 2019 return I did not prepare.  This amendment will be the second time he/she will be amending the 2019 returns. Amending this return will involve reducing Schedule C business expenses up to about $55K increasing his/her tax liability substantially.

a. Will this amendment increase his/her audit risk even though he/she will pay more money to IRS? 

b. Taxpayer wants her income increased so he/she could qualify for a bank loan. Will this be a reasonable reason from IRS perspective? I doubt it will be, but wants additional expert opinion.

Any advise will be much appreciated.

Thank you.