RunningBum
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Jun 18, 2007
- Messages
- 13,262
Really? If you're going to use that write up as a guide, your situation falls a lot more clearly under this statement, doesn't it?Here's a good write up about Amended Tax Returns:
Filing an Amended Tax Return Using IRS Form 1040X
Following this, I think my situation would fall under the latter...
"You should not file an amended return if you are only correcting math errors as the IRS computers will check your math and correct any errors in calculation. Math errors are errors in adding or subtracting items on your tax return."
Another way to state it, as Wally from "Leave It To Beaver" might say "No sense getting all shook up over it Beav"
"You can use an amended return to make corrections to your filing status, dependents, income, deductions, or tax credits. For example, if you need to report additional income from a W-2 that arrived after you filed your original return, you'll need to file an amendment. "
If it's a few dollars, I agree with the previous post that said let the IRS find it and bill you. If it's more than that, realize that you're going to be charged interest and a penalty, which I think is 20%.
It's up to you, but that's not a math error, that's additional income. An amended return really isn't that hard to do, especially since you can get it done before 4/15 and not deal with any interest or penalty.
Also, it depends on what the omission is. I somehow missed reporting a stock sale, and the IRS found it. The bill I got was for the entire proceeds, since they couldn't determine the basis and calculated it as 0, and a short term sale. So I had to fill out an amended return to declare the basis, because I would've owed thousands instead of less than $100.
I don't know if they caught my omission by a random check or if they check everyone's 1099s with schedule D. It became more of a pain because apparently once the computer kicked it out, someone did some manual calculations and swapped my basis and proceeds on a different transaction so it still didn't add up right unless you swapped that transaction. I called the 800 number on the form and actually talked the agent through each stock sale and 1099 to show that I was right, after adding the one omission. And even then it took a couple more letters and documentation to settle it, and they still didn't get it quite right, and I decided it was close enough and if they were fine with it, I was too.
If it's just dividends or interest, you won't go through so much.