Supporting Statements with Income Tax Return

[TromboneAl]

I'm talking about a statement that you include with your taxes to explain some entry. Something like this:

Concerning line 3 of form 8863 (Education Credits), this amount was billed in 2008 but paid in 2009. That's why you received no 1098T for this amount.

[Lakedog]

I've never included a supporting statement -- always thought the best course was to save any explanation for an audit (but have never been audited/questioned).

[ziggy29]

Since I started e-filing... never. Then again, I generally don't have complicated returns or need to submit uncommon forms.

[CyclingInvestor]

I usually have had to. I owned quite a few REITs from 1998-2006, and my brokerages usually reported the complex dividends wrong, even on the final 1099s (they have become better in recent years). I payed my taxes based on correct dividend allocations and included spreadsheets showing my calculations and references to each companies data.

[FUEGO]

Quote:

Originally Posted by CyclingInvestor I usually have had to. I owned quite a few REITs from 1998-2006, and my brokerages usually reported the complex dividends wrong, even on the final 1099s (they have become better in recent years). I payed my taxes based on correct dividend allocations and included spreadsheets showing my calculations and references to each companies data.

Filing taxes that disagree with 1099's is a surefire way to get flagged and audited. But if you have your data to back you up, it should be a matter of photocopying the supporting statements and resending the exact same thing to the IRS with a short cover letter saying "did you not get the first set of explanatory statements?"

[Linney]

I included a supporting statement once. The official tax record only listed my ex husband's SS number even though it was a joint responsibility. So I included a statement that the SS# number and name did not match because I had gotten divorce and changed back to my maiden name, that I was entitled to the deduction based on our marital settilement agreement and so ordered by the court, that I had the official court records to back up this assertion (NOT attached but in my possession), and that my ex would not be taking the deduction on his tax forms.

No audit occurred.

This was done via a paper filing, not electronic.