Say I file taxes. I then get a corrected 1099 DVD or INT. Suppose it changes my liability by under $35 either way. Can I just ignore it, or will that delay things more than doing a 1040X which is a PITA.
Mel
- posted
1 year ago
corrected 1099 query
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- Vote on answer
- posted
1 year ago
As you may be aware, the IRS does receive copies of the corrected 1099-Div and 1099-Int. Eventually an IRS computer checks what you reported against what the 1099s say. For this error, I would expect the IRS will catch up to you at some point and either (1) bill you for the amount owed plus interest; or (2) refund you for the amount the government owes you plus interest.
Given the cost of amending (or time required for the do-it-yourselfer), ignoring this seems like a good choice.
I would write out a note and stick it in my records that the IRS may get back to you on the discrepancy between what you reported on your tax returns and what the corrected 1099 forms say. Expect an IRS letter in the time range of say six month to say four years.
Corrected 1099-Divs occur all too often these days. For anyone who receives a 1099-Div, I advise not filing until the end of March, at the earliest.