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File Amended 1040? What would you do?
02-23-2018, 03:28 AM
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#1
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Recycles dryer sheets
Join Date: Sep 2013
Posts: 106
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File Amended 1040? What would you do?
As soon as I had everything I thought I needed I e-filed my 1040. Then along comes an unexpected (forgotten) 1099-B for the sale of fractional shares prior to distribution of a stock my aunt left me. Total proceeds $33.15. Long term capital loss of $11.73.
Since I already took a loss of $3,000 this has no effect on my taxes other than to increase my long term loss carry forward. I hate to bother filing an amended return over this. What would you do?
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02-23-2018, 04:29 AM
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#2
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2015
Location: Michigan
Posts: 5,003
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It does seem to perhaps not be worth the trouble to file an amended return. You only gain a couple bucks.
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"The mountains are calling, and I must go." John Muir
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02-23-2018, 04:58 AM
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#3
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,139
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Hmmm - tough call. I’d probably file an amended return but take my time doing so.
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Retired since summer 1999.
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02-23-2018, 05:35 AM
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#4
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Thinks s/he gets paid by the post
Join Date: Feb 2007
Location: Upstate
Posts: 2,950
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Quote:
Originally Posted by upset264
As soon as I had everything I thought I needed I e-filed my 1040. Then along comes an unexpected (forgotten) 1099-B for the sale of fractional shares prior to distribution of a stock my aunt left me. Total proceeds $33.15. Long term capital loss of $11.73.
Since I already took a loss of $3,000 this has no effect on my taxes other than to increase my long term loss carry forward. I hate to bother filing an amended return over this. What would you do?
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Since the IRS gets 1099-B data, they will likely determine that the amounts on your tax submission don't match. I'd tend to submit a corrected return on this.
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02-23-2018, 05:49 AM
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#5
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Thinks s/he gets paid by the post
Join Date: Feb 2014
Location: Williston, FL
Posts: 3,925
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Quote:
Originally Posted by copyright1997reloaded
Since the IRS gets 1099-B data, they will likely determine that the amounts on your tax submission don't match. I'd tend to submit a corrected return on this.
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Anything the IRS gets confirmation on, you need to file. In this case, likely nothing would happen, but they will notice you did not report it.
If you received $500 in cash as a result of a sale of an item you found on the side of the road, I would not bother.
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FIRE no later than 7/5/2016 at 56 (done), securing '16 401K match (done), getting '15 401K match (done), LTI Bonus (done), Perf bonus (done), maxing out 401K (done), picking up 1,000 hours to get another year of pension (done), July 1st benefits (vacation day, healthcare) (done), July 4th holiday. 0 days left. (done) OFFICIALLY RETIRED 7/5/2016!!
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02-23-2018, 05:54 AM
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#6
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2007
Posts: 13,227
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Quote:
Originally Posted by copyright1997reloaded
Since the IRS gets 1099-B data, they will likely determine that the amounts on your tax submission don't match. I'd tend to submit a corrected return on this.
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That happened to me. I missed a cashless stock exercise, so it was a tiny loss due to broker fees. But the IRS didn't have my basis so they considered it a $60K sale with 0 basis and sent me a letter with taxes due based on that. So I had to file amended to make it right. But the amount they claimed missing was different from the sale and I hadn't missed anything else. We went back and forth a few times before I called and got someone on the line to walk me through all the sales I had and verify what I put was correct, and the letters finally stopped. The surprising part is that I was able to do this in one fairly short phone call. I couldn't believe how quickly they accessed my return and all of my 1099-Bs and were willing to go through them and add them all up with me.
So, I'd do the amended return before they flag it. It could keep a can of worms from being opened. It really isn't hard at all to do an amended return.
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02-23-2018, 06:03 AM
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#7
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Thinks s/he gets paid by the post
Join Date: Jan 2011
Location: Fair Lawn
Posts: 2,961
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I recently filed an amended 2016 return. It ended with a $247 refund due, or so I thought. IRS sent me a check for $255. So I guess they do look at the info. In OP's case, not so much for the money, but I would file an amended return anyway just to keep the records straight.
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02-23-2018, 07:18 AM
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#8
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Moderator
Join Date: Nov 2014
Posts: 9,171
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Quote:
Originally Posted by copyright1997reloaded
Since the IRS gets 1099-B data, they will likely determine that the amounts on your tax submission don't match. I'd tend to submit a corrected return on this.
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^^This^^
The hassle of the IRS contacting you will be much worse than filing the amendment. I would do the amendment sooner than later.
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Every day when I open my eyes now it feels like a Saturday - David Gray
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02-23-2018, 09:10 AM
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#9
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,363
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I would wait and see given the minor amounts involved.
Worst case, the IRS sends a notice adding $33 of income to your return. If so, you can either pay the minor tax (if any) and avoid filing a 1040X and responding to straighten them out. Alternatively, if they send you a notice you can respond a send them a 1040X.
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If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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02-23-2018, 09:37 AM
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#10
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Moderator Emeritus
Join Date: Jan 2007
Location: New Orleans
Posts: 47,500
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I'd file an amended tax return immediately, to get it right. My reasons are,
1) Perfectionism - - it would drive me nuts to submit a return I knew was incorrect.
2) I do not want to risk getting in trouble with the IRS. I have known people who have, and their experiences were pretty scary.
3) The IRS knows you got the 1099-B, and they know you didn't report it. They have computers and it's not like you can pretend it doesn't exist and hope they might not notice it; they will. Seems to me like this would be audit bait if you don't amend your return.
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Happily retired since 2009, at age 61. Best years of my life by far!
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02-23-2018, 10:08 AM
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#11
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Dryer sheet wannabe
Join Date: Jul 2012
Location: Landing, NJ
Posts: 12
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Last year, I underreported my interest income from Ally Bank by $16 on my Federal return; I found the error when doing the state return later. I had problems with Turbotax importing interest from multiple Ally CDs. I don't use Turbotax for the state.
I decided not to amend my return, figuring that the IRS would either ignore such a small mistake (apparently what happened) or send me a letter.
Lesson learned: this year I did not file my Federal return until my State return was ready.
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02-23-2018, 10:23 AM
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#12
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Thinks s/he gets paid by the post
Join Date: Dec 2014
Posts: 2,511
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I had 2 nearly identical 1099B entries years ago. We each had a holding in a MF that was purchased on the same day and sold on the same day and the number of shares were the same. I only filed one of them on our taxes. I remember going back and forth on these... thinking I just copied one in twice.
Come the next tax season I get a nice IRS letter saying we thing you owe us $13k or so. I finally figured what had happened and work thru the taxes and it comes out that they owed me $80.
If you can learn by my lesson.... file now or file later. They may do what they did with me, just provide the date that shows the most owed to them. If you want to wait, put all the documentation together and write yourself a note explaining what you expect so you remember in 12 to 18 months.
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02-24-2018, 02:54 PM
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#13
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Thinks s/he gets paid by the post
Join Date: Jul 2006
Location: Denver
Posts: 3,518
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File the amended return. It isn't a big deal (I had to do my first amended return last year using turbo tax). Otherwise, it will always be at the back of your mind during tax time, if not all the time.
In my opinion, the saved hassle is not worth the added baggage.
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02-24-2018, 03:01 PM
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#14
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2013
Location: Limerick
Posts: 5,655
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File the amendment. Easy to do. You just print it out and have to mail it in since you can’t file electronically.
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02-24-2018, 03:32 PM
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#15
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Thinks s/he gets paid by the post
Join Date: Sep 2006
Posts: 1,743
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Just filed an amended return using for my daughter using TT after I efiled her return because of a late W2. It's not difficult to do but you have to mail the forms. It defeated the purpose of efiling in the first place. She owed a total of $49 in Federal and state taxes but it had to be done.
Next year I will wait until the end of February to efile her return.
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02-24-2018, 03:40 PM
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#16
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Thinks s/he gets paid by the post
Join Date: May 2005
Location: Portland
Posts: 1,713
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and this is why I don't file until the last possible moment. Well...I usually owe so I'm in no hurry. Last year we were traveling on April 15th so that may have been our earliest return ever
Last night i was looking at my Vanguard account. A new entry showed up with some money from Mom & Dad's Trust account. Which generated some Dividends. Talking to my SIL it appears that that money was distributed in error. Should have gone to my Dad. Hopefully this get straightened out before filing deadline. Otherwise i will claim and hope for a refund
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02-24-2018, 05:17 PM
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#17
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Thinks s/he gets paid by the post
Join Date: Jun 2004
Location: Diablo Valley (SF Bay Area)
Posts: 2,705
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I had to file an amended return last year in OCTOBER due to a corrected 1099 and it was easy. Unfortunately the IRS sent me a refund check but TurboTax recorded it as a payment on 2017 taxes. So that meant that my return was out of whack by $207. According to my 2017 return, I was to get a refund of $3475. Fortunately the IRS sent me the correct amount, which was only $3268. Hopefully the state will also recognize the fact that the amended refund was not rolled over to this year's taxes. Sold that investment but will amend again if necessary & mail in all 68 pgs to IRS and 70 pgs to state (requires a complete copy of 1040X with 540X)
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02-24-2018, 05:49 PM
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#18
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2016
Location: Northern Virginia
Posts: 7,586
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I wouldn't file an amended return since tax due does not change. I doubt if you will get a notice since no tax due. I would adjust my loss carryforword on next year's return.
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02-26-2018, 07:44 PM
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#19
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Thinks s/he gets paid by the post
Join Date: Feb 2007
Location: Upstate
Posts: 2,950
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Quote:
Originally Posted by Scrapr
and this is why I don't file until the last possible moment. Well...I usually owe so I'm in no hurry. Last year we were traveling on April 15th so that may have been our earliest return ever
Last night i was looking at my Vanguard account. A new entry showed up with some money from Mom & Dad's Trust account. Which generated some Dividends. Talking to my SIL it appears that that money was distributed in error. Should have gone to my Dad. Hopefully this get straightened out before filing deadline. Otherwise i will claim and hope for a refund
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October 12th for me.
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02-26-2018, 07:49 PM
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#20
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Feb 2005
Location: Central MS/Orange Beach, AL
Posts: 9,071
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Quote:
Originally Posted by Scrapr
and this is why I don't file until the last possible moment. Well...I usually owe so I'm in no hurry. Last year we were traveling on April 15th so that may have been our earliest return ever
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Same. Had to file an amended return a few years ago for a corrected 1099 sent me. Not the worst thing in the world to handle but I wait until close to 4/15 now.
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Retired 3/31/2007@52
Investing style: Full time wuss.
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