Does an a mistake that has no effect matter?

- T
- ted
  
  Contact options for registered users
posted
14 years ago

Wed, Oct 28, 2009 8:34 PM

On my 2008 return a receipt that is really long term capital gains was called interest. Since I have zero AGI anyhow, it really doesn't much matter this year, and would be increasing my taxes anyhow. Strictly speaking, is there any need to correct the error?

I will have the same payment in future years, and "hope" to have a positive AGI, and I will call it long term capital gains. Any chance the IRS will sieze on my error this year and insist I call it interest next year? I doubt it, but just want to make sure.

Thanks

- A
- Arthur Kamlet
  
  Contact options for registered users
Vote on answer
posted
14 years ago

Wed, Oct 28, 2009 8:58 PM

Please tell us more, explaining what these payments are and why you are sure the issuer is wrong

- H
- HLunsford
  
  Contact options for registered users
Vote on answer
posted
14 years ago

Thu, Oct 29, 2009 1:57 PM

I maybe read between the lines, but I think ted is saying that he mistakenly put the amount on the wrong line and in the wrong place.

So then, it will help us to know what kind of 1099 document and the amount it was on said document.

But if you merely put a relatively small amount, say $5,000 on the interest line on schedule b, and AGI is zero, you might as well ignore the procedural error and see if IRS sends you a letter 17 months down the road.

ChEAr$, Harlan Lunsford, EA n LA