• Page :
  • 1
  • Text Only
Voting History
rated:
I closed an HSBC account earlier in the year and completely forgot about it, until I got a 1099-INT in the mail for ~$75. Problem is, I have already filed my taxes and waiting for me ~1000 return.

What should I do now? My taxes are pretty simple (just the 1040, no schedules and no itemized deductions).

Member Summary

IRS
Thanks riznick
Disclaimer
Most Recent Posts
You mean on the payor side? Yes, there are still statutory penalties, but the payor can request an automatic 30 day exte... (more)

jetsfan92588 (Feb. 04, 2012 @ 9:28p) |

Last year I got an updated 1099 in April changing qualified dividends. I had already filed my taxes, but the minor chang... (more)

dblevitan (Feb. 05, 2012 @ 1:19a) |

Paper checks are processed soon after receipt. The ACH withdrawal can be set up for any date up to the filing deadline.... (more)

fedguy (Feb. 06, 2012 @ 6:27p) |

  • Also categorized in:
Thanks for visiting FatWallet.com. Join for free to remove this ad.

irs --- topic 308

Topic 308 - Amended Returns

If you discover an error after your return has been mailed, you may need to amend your return. The service center may correct errors in math on a return and may accept returns with certain forms or schedules left out. In these instances, do not amend your return! However, do file an amended return if your filing status, your income, your deductions or credits are incorrect.

Use Form 1040X (PDF), Amended U.S. Individual Income Tax Return, to correct a previously filed Form 1040 (PDF), Form 1040A (PDF), Form 1040EZ (PDF), Form 1040NR (PDF), or Form 1040NR-EZ (PDF). If you are filing to claim an additional refund, wait until you have received your original refund (you may cash that check). If you owe additional tax for a tax year for which the filing date has not passed, file Form 1040X and pay the tax by the filing date for that year to avoid penalties and interest. If the due date falls on a Saturday, Sunday, or legal holiday, the due date is delayed until the next business day. The Form 1040X Instructions list the addresses for the service centers.

File a separate Form 1040X for each year you are amending. Mail each form in a separate envelope. Be sure to enter the year of the return you are amending at the top of Form 1040X. The form has three columns. Column A shows original or adjusted figures from the original return. Column C shows the corrected figures. The difference between Columns A and C is shown in Column B. There is an area on the back of the form to explain the specific changes being made and the reason for each change. Attach any forms or schedules that are affected by the change. Generally, to claim a refund, Form 1040X must be filed within 3 years from the date of your original return or within 2 years from the date you paid the tax, whichever is later. Returns filed before the due date (without regard to extensions) are considered filed on the due date.

Attach copies of any forms or schedules that are being changed as a result of the amendment, including any Form(s) W-2 received after the original return was filed.
Tax forms can be obtained by calling 800-829-3676 or visiting www.irs.gov
An amended tax return cannot be filed electronically under the e-file system.
Normal processing time for Forms 1040X is 8 to 12 weeks from the IRS receipt date.

Please Note: Your state tax liability may be affected by a change made on your federal return. For information on how to correct your state tax return, contact your state tax agency.

vnuts21 said:   What should I do now?

Wait for your refund. After you receive it, it should be simple to amend your return.

Just wait for the notice. Amending a return over $75 in income is not worth it. Penalties and interest on $20-$25 in tax would be less than the cost of amending your return.

Can HR Block software handle amendments?

Like clockwork...happens every year. Geez folks, don't ever file your taxes in January.

dcwilbur said:   Like clockwork...happens every year. Geez folks, don't ever file your taxes in January.


FYI: This is February.

I'd file an amended return on your own. It's pretty straight-forward.

Because my 1099s tend to drift in, I never bother filing until mid-Feb at the earliest.

Good Luck,

TurboTax handles this quite well; I've had to do it twice.

sometimes i get several iterations of corrected 1099s through the summer. most years I file an extension and the file my taxes on or before Oct 15 deadline.

vnuts21 said:   Can HR Block software handle amendments?

Probably easier to print the form & do it manually than to use software. Alternatively, as previously stated, you could just wait for an IRS notice--let them calculate what you owe and just pay the $20 or whatever at that time. If your marginal tax bracket is 25% you'll only owe $75 * .25 = $18.75 plus interest which will be insignificant. I'd personally probably do the amendment becuase I like to do things right and not have any outstanding issues to deal with...but the better use of time would be to wait for a bill from the IRS.

I have a similar issue. I claimed about $2000 in business loss and zero income for carrying my real estate license all last year without selling a house. I was deployed almost all year. However, a house didn't close until Jan 2011 and I forgot about it. My wife just emailed me the 1099 and it is $2200. Is your advice the same in my situation and just file an amendment through TurboTax? Not to hi-jack the OPs post but our situations are similar and I didn't want to start another topic. I am getting an $8000 refund due to EIC, $2000 paid taxes, etc and a lot of tax free income months. I have rental property and I itemize deductions. TIA

oncelost said:   I have a similar issue. I claimed about $2000 in business loss and zero income for carrying my real estate license all last year without selling a house. I was deployed almost all year. However, a house didn't close until Jan 2011 and I forgot about it. My wife just emailed me the 1099 and it is $2200. Is your advice the same in my situation and just file an amendment through TurboTax? Not to hi-jack the OPs post but our situations are similar and I didn't want to start another topic. I am getting an $8000 refund due to EIC, $2000 paid taxes, etc and a lot of tax free income months. I have rental property and I itemize deductions. TIA

Amend your return. It will be easy enough to do the form manually that there's no reason to use Turbo Tax unless you just want to be consistent for next year (income comparisons, etc).

0AfterRebates said:   dcwilbur said:   Like clockwork...happens every year. Geez folks, don't ever file your taxes in January. FYI: This is February.

[rant] I admit I don't know why they do this, but this whole "you will receive your 1099 by Feb 15th" is BS. There was a law passed in 2009 that allows 1099-Div and INT to be mailed later than W2s.

Why is that? Optionsxpress FAQ says "This short delay will ensure that you receive the most accurate 1099 information.". I find that hard to believe, with everything being electronic these days...

Can anyone explain why they take longer? December 31st occurs for everyone at the same time [/rant]

par38lamp said:   0AfterRebates said:   dcwilbur said:   Like clockwork...happens every year. Geez folks, don't ever file your taxes in January. FYI: This is February.[rant] I admit I don't know why they do this, but this whole "you will receive your 1099 by Feb 15th" is BS. There was a law passed in 2009 that allows 1099-Div and INT to be mailed later than W2s.

Why is that? Optionsxpress FAQ says "This short delay will ensure that you receive the most accurate 1099 information.". I find that hard to believe, with everything being electronic these days...

Can anyone explain why they take longer? December 31st occurs for everyone at the same time [/rant]
Yes. Because fund companies constantly recharacterize their gains/distributions. Usually, it's more of an issue with them than the broker...

Additionally, though perhaps unrelated, cost basis must now be reported by the broker for most types of securities.

'sup flanders?

string3599 said:   Just wait for the notice. Amending a return over $75 in income is not worth it. Penalties and interest on $20-$25 in tax would be less than the cost of amending your return.

Do this. You'll probably get a CP-2000 notice from the IRS and it will automatically make the change and send you a bill. It's not worth amending on your return over.

par38lamp said:   "This short delay will ensure that you receive the most accurate 1099 information.". I find that hard to believe, with everything being electronic these days...I have a fair amount of experience in accounting, corporate finance, regulatory reporting, tax, etc...this stuff doesn't just happen, even on the W-2 side of things. It takes many man hours and many events to close out the books.

You have until April 15 to file your tax return. What's the big hurry? If you're due a big refund, well, that's your fault for paying too much.

It used to be a big deal in the media if you missed a 1099 or W-2. The thing that scared the stuffin out of me at tha time was if you missed one, the IRS was automatically fining you $50.00 plus tax for each missed event even if it was just a few dollars on the 1099 like bank interest or DRIP dividends.
Can anyone update us?

For such a small amount ($75), they may not even catch it. I'd let it go and see what happens.

But a tax refund is free money! How to spur the economy with this? /sarcasm

rangerxenos said:   For such a small amount ($75), they may not even catch it. I'd let it go and see what happens.

In my experience, the IRS has picked up small discrepancies (even in my favor) in reported income. I'd file an amendment. Hey, Uncle Sam needs every dollar that he can get his hands on.

dcwilbur said:   par38lamp said:   "This short delay will ensure that you receive the most accurate 1099 information.". I find that hard to believe, with everything being electronic these days...I have a fair amount of experience in accounting, corporate finance, regulatory reporting, tax, etc...this stuff doesn't just happen, even on the W-2 side of things. It takes many man hours and many events to close out the books.

You have until April 15 to file your tax return. What's the big hurry? If you're due a big refund, well, that's your fault for paying too much.


For the vast majority of refund returns coming in January, they are for people getting "free money" (usually Earned Income Credits and other tax credits) and they pay very little income taxes on the return that is filed. The people who owe usually wait until the April 15 deadline to file.

dcwilbur said:   Like clockwork...happens every year. Geez folks, don't ever file your taxes in January.

Time value of money. L2economics

sayhey said:   rangerxenos said:   For such a small amount ($75), they may not even catch it. I'd let it go and see what happens.

In my experience, the IRS has picked up small discrepancies (even in my favor) in reported income. I'd file an amendment. Hey, Uncle Sam needs every dollar that he can get his hands on.


Your first sentence seems like it would lead more to the "don't file an amended return and wait a the bill" advice than file an amendment.

jd2010 said:   dcwilbur said:   Like clockwork...happens every year. Geez folks, don't ever file your taxes in January.

Time value of money. L2economics


Not sure if sarcastic... If TVM had anything to do with it, it's obviously better to file on 04/17...

BingBlangBlaow said:   jd2010 said:   dcwilbur said:   Like clockwork...happens every year. Geez folks, don't ever file your taxes in January.

Time value of money. L2economics


Not sure if sarcastic... If TVM had anything to do with it, it's obviously better to file on 04/17...


Some of us due to new jobs and such couldnt game the system to end the year with a tax liability as would obviously be optimal.

fedguy said:   dcwilbur said:   par38lamp said:   "This short delay will ensure that you receive the most accurate 1099 information.". I find that hard to believe, with everything being electronic these days...I have a fair amount of experience in accounting, corporate finance, regulatory reporting, tax, etc...this stuff doesn't just happen, even on the W-2 side of things. It takes many man hours and many events to close out the books.

You have until April 15 to file your tax return. What's the big hurry? If you're due a big refund, well, that's your fault for paying too much.


For the vast majority of refund returns coming in January, they are for people getting "free money" (usually Earned Income Credits and other tax credits) and they pay very little income taxes on the return that is filed. The people who owe usually wait until the April 15 deadline to file.


That is my situation. I pay in taxes because I am never quite sure how my year will end up; I normally try to pay around $2K. Due to tax-free deployments, my income is so low some years I qualify for EIC and other tax credits. Those years, my real estate income is also greatly reduced. The problem is I don't know when my deployments will occur, so I have to prepare to pay.

You hit the nail on the head, I wait till the last day if I owe. If I am getting a refund, I file immediately. This year I put the cart before the horse and completely forgot about some income.

fedguy said:   dcwilbur said:   par38lamp said:   "This short delay will ensure that you receive the most accurate 1099 information.". I find that hard to believe, with everything being electronic these days...I have a fair amount of experience in accounting, corporate finance, regulatory reporting, tax, etc...this stuff doesn't just happen, even on the W-2 side of things. It takes many man hours and many events to close out the books.

You have until April 15 to file your tax return. What's the big hurry? If you're due a big refund, well, that's your fault for paying too much.


For the vast majority of refund returns coming in January, they are for people getting "free money" (usually Earned Income Credits and other tax credits) and they pay very little income taxes on the return that is filed. The people who owe usually wait until the April 15 deadline to file.


If paying with a paper check it makes sense to wait until the deadline. If you pay by ACH don't they process the payment on tax day -- regardless of when you e-file?

how much do you make? if you are in the 15% bracket, i suggest just cross your finger and ignore it.

JW said:   It used to be a big deal in the media if you missed a 1099 or W-2. The thing that scared the stuffin out of me at tha time was if you missed one, the IRS was automatically fining you $50.00 plus tax for each missed event even if it was just a few dollars on the 1099 like bank interest or DRIP dividends.
Can anyone update us?


You mean on the payor side? Yes, there are still statutory penalties, but the payor can request an automatic 30 day extension.

Last year I got an updated 1099 in April changing qualified dividends. I had already filed my taxes, but the minor change gave me a refund of $8. Took 10 minutes in TurboTax plus a stamp to make the change using a 1040X, and a month or two later I got a check for $8 from the treasury. Had it been the other way around, I probably would've ignored it unless the IRS sent me a letter.

stanolshefski said:   fedguy said:   dcwilbur said:   par38lamp said:   "This short delay will ensure that you receive the most accurate 1099 information.". I find that hard to believe, with everything being electronic these days...I have a fair amount of experience in accounting, corporate finance, regulatory reporting, tax, etc...this stuff doesn't just happen, even on the W-2 side of things. It takes many man hours and many events to close out the books.

You have until April 15 to file your tax return. What's the big hurry? If you're due a big refund, well, that's your fault for paying too much.


For the vast majority of refund returns coming in January, they are for people getting "free money" (usually Earned Income Credits and other tax credits) and they pay very little income taxes on the return that is filed. The people who owe usually wait until the April 15 deadline to file.


If paying with a paper check it makes sense to wait until the deadline. If you pay by ACH don't they process the payment on tax day -- regardless of when you e-file?


Paper checks are processed soon after receipt. The ACH withdrawal can be set up for any date up to the filing deadline. The 1040 instructions appear to state that e-filers can enter a specific date for when the money is taken out of their account. So the ACH withdrawal is similar to bill payer service. You can also use the EFTPS service to make your tax due payment which can be up to one year in advance.



Disclaimer: By providing links to other sites, FatWallet.com does not guarantee, approve or endorse the information or products available at these sites, nor does a link indicate any association with or endorsement by the linked site to FatWallet.com.

Thanks for visiting FatWallet.com. Join for free to remove this ad.

TRUSTe online privacy certification

While FatWallet makes every effort to post correct information, offers are subject to change without notice.
Some exclusions may apply based upon merchant policies.
© 1999-2014