"Gene E. Utterback, EA"

- quote -

Not for $8 additional tax they won't, or at least shouldn't.
Unlike a math error, processing anything as an audit
adjustment has to cost IRS about a $100 at least. Nor can
they legally apply a penalty, BTW.

Processing the 1040X isn't cheap either, as there's a charge
to IRS by the Federal Records enter just to file away your
processed 1040X, so one might rationalize not amending,
saving all us other t/ps the cost of it all. Or maybe
better yet, file it to tie up their staffing so we might not
be audited on something significant. :-)

Fred F.

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Jason B <NO_SPAM_jbarnett4[at]tampabay.rr.com> wrote:

- quote -

I would not do an amended return for one of my clients in a
case like this unless the client was adamant about it.

IRS has some de minimis rule for sending notices of proposed
additional assessments for unreported items (Form CP-2000)
and may not be interested in an additional $8. I would tell
my client to wait for the CP-2000 and then pay the tax.

The same goes for any state returns.

Lanny K. Williams, CPA
Nawarat, Williams & Co., Ltd.
Income Tax Services for Expatriate Americans

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"Jason B" <NO_SPAM_jbarnett4[at]tampabay.rr.com> wrote:

- quote -

First and foremost - the law requires reporting companies to
mail such documents by 01/31. Allowing for nothing more
than the mail, anyone who files a return prior the end of
the first week of February is just asking for trouble. I
don't usually file returns for clients until after the
middle of February and then only for the most
straightforward of returns.

Second - the IRS will likely catch this when they do their
computer matching. If that happens they will send you a
Notice of Proposed Changes showing the adjustment. If your
math agrees with their math, write the check they ask for
and be done with it.

If they don't catch it, wait until either you payment check
clears or you get your refund check - then find and follow
the instructions for Form 1040X. This form basically has 3
columns - one for what you did report, one for what you
should have reported and one for the difference. Explain
the difference and you are done.

In either case you may need to also amend your state return.

Good luck,
Gene E. Utterback, EA, RFC

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You should file a form 1040X and with this you will pay the
extra $8. Don't forget the state and/or local returns, in
you have them.

Missy Doyle

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Jason B <NO_SPAM_jbarnett4[at]tampabay.rr.com> wrote:

- quote -

No.

- quote -

No. You should file an amended return on Form 1040X.

- quote -

Just 1040X (and Sch. B if you filed one with the original
return, or if the $50 increases your taxable interest income
to more than $1,500).

--
D.F. Manno
dfm2a3l0t2[at]spymac.com
The problem with being sure that God is on your side is that
you can't change your mind, because God sure isn't going to
change His. (Roger Ebert)

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Unfortunately, if you recieved a 1099 for this it is taxable
income & needs to be reported on your return. IRS will not
just adjust your refund...at least not right now. They will
send you a letter asking for the additional tax plus
interest sometime in the future. You don't need to refile
the return & all schedules, just file an Amended reteurn
(1040X) and make the adjustments to the original return &
pay the additional tax now.

I always advise my clients to wait till first week in
Febrary to file just to be sure all documents have been
recieved but even then this can happen. Dont forget to do
the same for your state return if you are required to file
that as well.

Johnny D

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Jason B <NO_SPAM_jbarnett4[at]tampabay.rr.com> wrote:

- quote -

This is what the 1040X form is for. You will need to submit
only the schedules that change.

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"Jason B" <NO_SPAM_jbarnett4[at]tampabay.rr.com> wrote:

- quote -

For that amount, I would just wait and let IRS send you a
letter where they will give you a choice to pay the increase
plus penalty or argue with them....I would just pay if it is
in line...

Mike Lewis, CPA

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_jbarnett4[at]tampabay.rr.com (Jason=A0B) asked:

- quote -

Wait !! Don't do anything until you receive your cancelled
check -- if you paid additional tax with your return -- or
your refund, if you had one coming.

When either of those events has occurred, then you must file
a 1040-X, and you should attach to that _only_ the schedule
or form which shows a change. When filling out the 1040-X,
you will enter original return figures in the first column
and corrected figures in the third column - with the + or
minus difference in the middle column. In the remarks
section at the end of the 1040-X (on the back, if paper),
you should reference the line with a change and explain
briefly [e.g., "received additional 1099 after filing"] --
and since the item should have been entered on Schedule B,
you should attach a corrected B only. (That's 2 pieces of
paper, the Form 1040-X and the Schedule B.)

The important thing is _not_ to have two different returns
arriving in the system at the same time. That's why you
should wait until you receive confirmation that your
original return was received.

Bill

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Looking for opinions on what I should do next.

I finished and mailed my federal taxes yesterday. Last
night, I> received in the mail a 1099-INT from Bank of
America that I had totally> forgotten to list on my returns.
I had signed up for a BOA checking> account this summer,
and they had a "free $50" promo. The $50 is> reported as
interest income.

Looking at the tax tables, my total taxes owed only goes up
by $8. Will> the person that checks my return just reduce
my refund by that amount,> or should I file another federal
return including that interest? Also,> if I have to file
another federal return, do I have to send all the> schedule
again(A, C, D, & SE) or jus the 1040?

Thanks in advance.

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