"jeff" <jeff23news[at]optonline.net> wrote:

- quote -

I think they are definitely going to be looking for the
$25,000 proceeds. Since the original purchase, did you
receive Original Issue Discount (OID) interest? If you did,
that adds to your basis, meaning you could possibly have an
additional loss and not a gain. You would have to check
back statements to be sure.

From what I've seen others here recommend, you may need to
wait for the IRS to process the return before amending.
Otherwise, you may confuse matters. Besides, they process
amended returns slower than current ones.

Mike

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"jeff" <jeff23news[at]optonline.net> wrote:

- quote -

If you know how to do an amended return quickly, do it, why
not. You will not have to worry about it anymore.

If it is a big deal for you to do the amended return, such
as looking for accountant etc. then screw it. Its a small
mistake. If you are audited, in the worst case scenarion you
will go to Tax Court, and will need to get a tax lawyer to
represent you. You will spend 8 months worrying about stupid
thing.

If you are worried, and you do the amended return, you will
no longer worry he he he

I hope this answers your question. he he he

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"jeff" <jeff23news[at]optonline.net> wrote:

- quote -

One of the things IRS does catch and write those beautiful
letters about is unmatched 1099's. You should have reported
the proceeds (likely shown on a 1099B). I personally would
file a 1040x to avoid the hassel of explaining why I don't
owe tax on the whole $25,000. However, since the difference
is so small, you may prefer to just wait and see if you get
the letter before the 3 year statute of limitations is up.

Mike Lewis, CPA

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- quote -

They get the gross reported. . It's up to YOU to report the
net profit. I had a client who reasoned that his $50,000
loss on the stock market meant he didn't have to file at
all. Unfortunately, to get to the $50,000 loss, he churned
over a million in gross sales. He had all sorts of nasty
letters.....

Nan, EA in LA

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jeff wrote:

- quote -

The answer depends upon the evolving state of IRS
information systems. Filing 1040X may not yet result in
plugging enough change items into the computer record to
prevent a mismatch when they are soon run against the "1099
tapes." Also, on which mismatch cases the IRS will pull the
original return - which retrieves the 1040X - can vary over
time and even by IRS Center. I would file the 104X now. It
will simplify a response to any notice, and never know, the
1040X posted to computer may be one of the things which says
pull original before notice can go out.

F--

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I filed my 2002 return about a week ago (since I had a 6
month extension.) Today, I discovered that, on my Schedule
D, I had omitted a small gain of $12.15 from the maturity of
a $25,000 US Treasury note, which matured in 2002, and was
originally purchased in 1992 for $24,987.85.

The addition of this small gain does not affect my 2002
income, since I had a big loss in 2002, and my allowed loss
for 2002 remains at $3,000. (For 2003 my carryover loss
will be reduced by the mere $12.15.)

Should bother filing 1040X, with an attached corrected
Schedule D? My only reason for filing 1040X would be in
case the IRS questions the omission of the U.S. Treasury
note. Since the $25,000 gross proceeds is reported to the
IRS, I'm worried they could make an issue out of it.

Should I wait for them to process my return and see if they
ever ask about the treasury note, or should I just go ahead
and file the 1040X?

Thanks.

Jeff

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