The 3rd Amendment this year!

Posted by Mark Bole on April 20, 2009, 8:21 pm

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MyVeryOwnSelf wrote:

>>> ... that makes

>>> the tax difference $3.30. Do I really have to file ANOTHER amended

>>> return for this small of a difference?

>> For $3 I would not bother to amend. It costs the IRS about $35

>> to process each amended return.

> What about $193? It seems too large to ignore, but I have no comparisons,

> and haven't seen any IRS information about a lower limit.

> If the state return is amended also, that would be $60 extra. It seems

> sensible to amend it because if only federal is amended, the state carry-

> forwards to 2009 would be different from federal ones (capital loss carry-

> forward in this case), which sounds messy.

If I amend for myself or a client to get a refund, the cost to the IRS
is irrelevant to me, only my time counts. If I can amend and get back
(net) the price of dinner out at someplace more than a fast food place,
I'll do it.

-Mark Bole

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Posted by MyVeryOwnSelf on April 21, 2009, 4:50 pm

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>> What about $193? It seems too large to ignore, but I have no

>> comparisons, and haven't seen any IRS information about a lower

>> limit.

>> If the state return is amended also, that would be $60 extra. It

>> seems sensible to amend it because if only federal is amended, the

>> state carry- forwards to 2009 would be different from federal ones

>> (capital loss carry- forward in this case), which sounds messy.

> If I amend for myself or a client to get a refund, the cost to the IRS

> is irrelevant to me, only my time counts. If I can amend and get

> back (net) the price of dinner out at someplace more than a fast food

> place, I'll do it.

I should've stated that the question is about extra payment to the tax
collector (not a refund).

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<< 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. >>
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<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
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Posted by Mark Bole on April 21, 2009, 6:54 pm

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MyVeryOwnSelf wrote:

>>> What about $193? It seems too large to ignore, but I have no

>>> comparisons, and haven't seen any IRS information about a lower

>>> limit.

>>>

>>> If the state return is amended also, that would be $60 extra. It

>>> seems sensible to amend it because if only federal is amended, the

>>> state carry- forwards to 2009 would be different from federal ones

>>> (capital loss carry- forward in this case), which sounds messy.

> I should've stated that the question is about extra payment to the tax

> collector (not a refund).

According to others in this group, there are some threshold amounts
below which the IRS won't necessarily pursue an underpayment. The tax
tables themselves (for most taxpayers under $100K taxable income) have
$50 steps built in (i.e. your income might rise or fall by that much and
still not change your tax).

Obviously these thresholds are not publicized. For $193 additional
balance due, I would file an amendment, and the state too, in your example.

I saw a client this year with a letter from the IRS saying, basically,
"you have a $105 credit, your tax due is $105, and oh by the way you owe
us $8 interest on the transaction so send us $8".

I was ready to track it down since my initial recollection was that the
client shouldn't have owed it, but he said it wasn't worth his time.

-Mark Bole

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<< ------------------------------------------------------- >>
<< 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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Posted by DF2 on April 22, 2009, 1:26 pm

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In misc.taxes.moderated, sandybeth wrote:

>Why can't these brokerage firms get their numbers correct the first

>time??? Every year I have to file at least 1 amended return, this

>year I filed 2. TODAY--April 18th--I received yet another corrected

>statement from ETrade. They over-reported our qualified dividends by

>$23.00. Instead of 175, they are 152. At 15% tax rate, that makes

>the tax difference $3.30. Do I really have to file ANOTHER amended

>return for this small of a difference?

>Sandy

When I saw the subject, I wondered if you were having soldiers
staying at your home without permission. :-)

[posted as tax humor-- but at first I really did suspect it was a
post about a Bill of Rights thing.]

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<< ------------------------------------------------------- >>
<< 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. >>
<< ------------------------------------------------------- >>