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Subject Author Date
Corrected form 1099 MrTom 04-25-2008
---> Re: Corrected form 1099 removeps-groups...04-25-2008
Posted by Arthur Kamlet on April 27, 2008, 8:11 pm
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>>removeps-groups@yahoo.com wrote:
>>>
>>>> An increase of $2.46 in Interest Income.
>>>>
>>>> A decrease of $7.35 in both Total Ordinary Dividends and Qualified
>>>> Dividends.
>>>>
>>>> An increase of $4.89 in Cash Liquidation Distributions.
>>>>
>>>> Do the IRS and/or the state of California care about such minuscule
>>>> changes? Must I, or should I, file amended returns? How should I
>>>> handle this, what would you do?
>>>
>>> No, it doesn't matter. The cost of processing time to both you and
>>> IRS agents is not worth it.
>>
>>Which begs the question, why does the financial institution bother, and
>>do they bother sending these changes in to the IRS? Who is paying all
>>the overhead costs for this, if it's not necessary?
>
>They're required to get it correct. And they might have some
>customers with 1000 times the position, for whom it does matter. (And
>the largest part of the cost is the snailmail, sending lots of data to
>the IRS is cheap.)


The financial institution does have a de minimis reporting requirement
of anything under $10. But for corrections, there is no de minimis
amount.
--


ArtKamlet at a o l dot c o m Columbus OH K2PZH

--
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Posted by Andrew on April 28, 2008, 2:14 pm
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 removeps-groups@yahoo.com wrote:
> ...
>
> No, it doesn't matter. The cost of processing time to both you and
> IRS agents is not worth it. ..

I am not trying to be funny here, but why (or perhaps, how) do you say this?
I've seen others in the NG state that even if one doesn't receive a 1099 for
an interest payment from a FI below $10., one still needs to declare it as
income. And in that case, I don't even think the IRS gets the reported
income.

In this case, they DO receive the corrected data, right?

So, what you say may be true from a practical sense, can you cite anything
that says you can forget about the amended return? Being a worry wart,
short of seeing an official IRS statement, I sure would. And what if I were
audited? Would some cryptic words like "Oh, I didn't report that?
Something I read from an anonymous source on the internet said I didn't have
to worry about correcting additional income" should wouldn't look good in my
mind.

But again, I'm just an interested party to the discussion.
--
-------------------------------------------------------------
Regards -

- Andrew

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by removeps-groups@yahoo.com on April 30, 2008, 11:39 am
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> I am not trying to be funny here, but why (or perhaps, how) do you say this?
> I've seen others in the NG state that even if one doesn't receive a 1099 for
> an interest payment from a FI below $10., one still needs to declare it as
> income. And in that case, I don't even think the IRS gets the reported
> income.

True. However, in the OP's case, it looks like the tax after applying
the change is the same or less than before, depending on whether the
$4.89 liquidation distribution is taxable or not (usually it is not
taxable as it is a return of capital). So his tax would decrease --
best case by about $10, worst case by $0 (because of the rounding (eg.
all income from 50000 to 50050 has the same tax).

> In this case, they DO receive thecorrecteddata, right?

I think so.

> So, what you say may be true from a practical sense, can you cite anything
> that says you can forget about the amended return? Being a worry wart,
> short of seeing an official IRS statement, I sure would. And what if I were
> audited? Would some cryptic words like "Oh, I didn't report that?
> Something I read from an anonymous source on the internet said I didn't have
> to worry about correcting additional income" should wouldn't look good in my
> mind.

If you get a CP2501 letter, just write back with the facts and file an
amended return. It's nothing to worry about really. But just my gut
feeling is that you won't get a CP2501 even if your income did
increase $10.

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

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