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Subject Author Date
Just got a K1! Jessica 04-04-2008
Posted by Jessica on April 4, 2008, 1:34 pm
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 My tax returns are filed. Today I got a K1 in the mail.

The only entries on it are interest income of $6, qualified dividends of $8,
and cumulative adjustment to tax basis of -$11.

I no long own any.

Can I just ignore this or do I have to file an amended return?

--
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Posted by Jessica on April 4, 2008, 2:28 pm
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> My tax returns are filed. Today I got a K1 in the mail.
>
> The only entries on it are interest income of $6, qualified dividends of
> $8, and cumulative adjustment to tax basis of -$11.
>
> I no long own any.
>
> Can I just ignore this or do I have to file an amended return?
>
Since I sold it, it is listed on the 1099B, but not on the 1099DIV or
1099INT. I don't care much about the $4 in tax I owe (it would certainly
cost the IRS more than $4 to process the amended return, but that is besides
the point...), but the work in amending the return. Would ignoring it
increase or decrease my chances of an audit? Would amending the return
increase or decrease my chances of an audit?

--
<< ------------------------------------------------------- >>
<< 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 Maven on April 8, 2008, 12:59 pm
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>
got a K1 in the mail.
>
> > The only entries on it are interest income of $6, qualified dividends of
> > $8, and cumulative adjustment to tax basis of -$11.
>
> > I no long own any.
>
> > Can I just ignore this or do I have to file an amended return?
>
> Since I sold it, it is listed on the 1099B, but not on the 1099DIV or
> 1099INT.  I don't care much about the $4 in tax I owe (it would certainly
> cost the IRS more than $4 to process the amended return, but that is besides
> the point...), but the work in amending the return.  Would ignoring it
> increase or decrease my chances of an audit?  Would amending the return
> increase or decrease my chances of an audit?
>
> --
The IRS does match up the info it receives. There is a penalty for
failing to report any item that a form was issued for. It is not that
hard to file the amended return, and I think that the mismatch if you
don't would cost you money. I don't know the formula IRS uses for
deciding whom to audit but why raise and red flags?

--
<< ------------------------------------------------------- >>
<< 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 Andrew on April 8, 2008, 7:41 pm
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Maven wrote:
>> The IRS does match up the info it receives. There is a penalty for
> failing to report any item that a form was issued for. ...

So, as a young kid (say, aged 13) hypothetically, if I have received a W-2
for, say, $800, and that's my ONLY source of income (thus, I wouldn't need
to file at all), the IRS would access me a penality because I didn't report
an item that a form was used for?

You sure about this?? I don't think what you said is true.
--
-------------------------------------------------------------
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 D. Stussy on April 9, 2008, 12:18 am
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> My tax returns are filed. Today I got a K1 in the mail.
>
> The only entries on it are interest income of $6, qualified dividends of
$8,
> and cumulative adjustment to tax basis of -$11.
>
> I no long own any.
>
> Can I just ignore this or do I have to file an amended return?

Technically, yes (file the amended), but if it doesn't change your tax, then
the omission is not material and one may as well ignore it.

Now, your state income tax return may be a different issue. California is
going after everyone that owes even $0.02!

--
<< ------------------------------------------------------- >>
<< 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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