Just got a K1!

Since I sold it, it is listed on the 1099B, but not on the 1099DIV or

got a K1 in the mail.

The IRS does match up the info it receives. There is a penalty for failing to report any item that a form was issued for. It is not that hard to file the amended return, and I think that the mismatch if you don't would cost you money. I don't know the formula IRS uses for deciding whom to audit but why raise and red flags?

So, as a young kid (say, aged 13) hypothetically, if I have received a W-2 for, say, $800, and that's my ONLY source of income (thus, I wouldn't need to file at all), the IRS would access me a penality because I didn't report an item that a form was used for?

You sure about this?? I don't think what you said is true.

Technically, yes (file the amended), but if it doesn't change your tax, then the omission is not material and one may as well ignore it.

Now, your state income tax return may be a different issue. California is going after everyone that owes even $0.02!

Several times I have received corrected 1099's from brokerage firms after I have filed and I ignored it (did not file amended return) and heard nothing from the IRS. The differences were $50 - $75 so I think there is a minimum for the matching of W2s and 1099's.

The times when I got a corrected 1099 from a brokerage firm resulted in smaller taxes due. Part of a dividend from a REIT turned into return of capital or some such. Once I decided to not re-file to save the $15 (after having filed early and not procrastinating as usual). Since then I wait until April to mail.

New York doesn't ask for enough information to know one way or another; so that probably isn't an issue. Thanks.