Will an amended tax return lead to an audit?

Probably not, but who knows with the IRS. But, it doesn't matter, you have to file it anyway or they will certainly pop your arse over it.

NO, i had to amend mine last year

Is a majority of your income 1099 work? If not, don't worry about it. You are talking about $250 in taxes owed.

The irs mostly is looking to audit people that have large cash businesses to make sure they are paying their share. Or businesses that write off a ton of things that are in the gray area of business expenses.

It's not going to lead to an AUDIT. However, it's possible you could get a matching letter from the IRS, basically assessing you additional tax on that $1,000.

Your options are then to:

1) Pay it
2) Amend your return to use any expenses that can offset that
3) Fight it.

They will catch it and send you a letter to pay the tax plus interest and that will probably be it. if you amend it, you're fine. If they send your notice they will most likely give you the benefit of the doubt with a letter of explaination or a phone call.

Why would you be worried about an audit anyways?

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Why would you be worried about an audit anyways?

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Same reason you would not want to go to the proctologist. Because it's an unnecessary pain in the arse.

I've been told that as long as it is done prior to the original due date of the return there are no red flags raised.

I did have a CPA tell me once that he advises all of his clients to file for an extension no matter what. He would have many of his clients file for an extension (and pay any tax owed as shown on the prepared - but not filed - return) and then file their returns in the week after April 15th.

He swore that filing an extension lowered your risk of an audit. He had some published stats from the IRS showing this.