Bynes has been cited for a string of hit-and-run accidents in the last several months, most recently last week on Ventura Boulevard in LA.
The Easy A actress was alleged to have rear-ended a Toyota Corolla and then driven away after a brief conversation with the other driver.
Police have apparently spoken to Bynes about the collision and have concluded that there are grounds to charge the star, reports TMZ.
The LA City Attorney is expected to begin reviewing the case in the coming days to decide on if Bynes will be formally charged with misdemeanour hit-and-run.
A spokesperson for Bynes has not commented on this development.
Bynes was also arrested in April on suspicion of DUI, to which she pleaded not guilty.