File Amended 1040? What would you do?

[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?

 

[DrRoy]

It does seem to perhaps not be worth the trouble to file an amended return. You only gain a couple bucks.

 

[audreyh1]

Hmmm - tough call. I’d probably file an amended return but take my time doing so.

 

[copyright1997reloaded]

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?

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.

 

[Senator]

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.

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.

 

[RunningBum]

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.

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.

 

[mystang52]

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.

 

[Jerry1]

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.

^^This^^

The hassle of the IRS contacting you will be much worse than filing the amendment. I would do the amendment sooner than later.

 

[pb4uski]

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.

 

[W2R]

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.

 

[gear2th]

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.

 

[bingybear]

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.

 

[walkinwood]

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.

 

[Dash man]

File the amendment. Easy to do. You just print it out and have to mail it in since you can’t file electronically.

 

[Corporateburnout]

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.

 

[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

 

[gayl]

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)

 

[Montecfo]

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.

 

[copyright1997reloaded]

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

October 12th for me.

 

[Dawg52]

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

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.

 

[jebmke]

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.

Amended returns are often easier than the original. I do probably a half dozen per year.

If one has never done an amendment, a situation like this is a good exercise with low risk (consequence) of mistake given the small dollar amount.

 

[njhowie]

The IRS will not care about this amendment, and it is likely a waste of your time. Since the amount of the difference is minuscule, and it is in your favor, they will not care. If you file the amendment, though extremely unlikely, it could trigger further review of your return.

The IRS would care if the result was that you owed more taxes.

At the end of the day, all the IRS is interested in is that you have paid the taxes you are legally obligated to pay...and you have. If you believe the additional $11 is worth the effort, then go for it.

Personally, I wouldn't waste my time.

 

[gayl]

IRS sent me a letter stating my return was 'adjusted' bc of additional interest received. I was waiting until October to amend in case I got (yet another) corrected 1099. I'm wondering why I have to jump thru all the hoops since they apparently have the info already (1099R, 1099B, 1099div)

 

[Jerry1]

IRS sent me a letter stating my return was 'adjusted' bc of additional interest received. I was waiting until October to amend in case I got (yet another) corrected 1099. I'm wondering why I have to jump thru all the hoops since they apparently have the info already (1099R, 1099B, 1099div)

I guess if you're satisfied with their adjusted, there would be no reason to file an amendment.

I have one to file for last year, but they never got hold of me for an adjustment. Oh, that's right, mine is money due me. I guess they don't catch them all. Frustrating that they can't just be fair. Too much to ask I guess.

 

[foxfirev5]

IRS sent me a letter stating my return was 'adjusted' bc of additional interest received. I was waiting until October to amend in case I got (yet another) corrected 1099. I'm wondering why I have to jump thru all the hoops since they apparently have the info already (1099R, 1099B, 1099div)

Look at the letter they sent you. Under what you need to do, if its says "if you agree with the changes we made - You don't need to do anything" Then you're in the clear.

Last year I omitted some interest and had to file an amended return for a whopping $3 additional tax. I applied my refund to this years taxes but forgot the $3. Last week they sent me the $3 back. Hopefully we're even.