Amended Returns for a small business

[sherspan]

I filed out taxes in 2005 for both business and personal taxes. For our business, I was advised not to claim all my deductions because we were trying to buy a house. They (a bank person) told us to try to show we made more money so we could qualify for a better loan. We did. Now, it didn't help us at all. We ended up owing the IRS over 8 thousand dollars and have been paying them a monthly amount (sporadically) ever since.
Now, I am wondering if I can file an amended return for that tax year to correct my mistake. If I file the amended return, will that discharge my tax debt? We've had returns every other year that they (IRS) have kept. And I extemely regret listening to that *person*. What can I do?

 

[Michael Wechsler]

An amended return may change your tax liability. It may also open you up to an audit for a return from four years ago. Do you really want to do that?

 

[Ballack]

I will agree with thelawprofessor. What ever he is insisting is very much true. The person has to take proper care about the accounts as it deals with many important things. Person can assert a percentage of rent or mortgage and utility bills of the office resources as small business tax deductions as it will be included in the office expenses.