The 3rd Amendment this year!

Why can't these brokerage firms get their numbers correct the first time??? Every year I have to file at least 1 amended return, this year I filed 2. TODAY--April 18th--I received yet another corrected statement from ETrade. They over-reported our qualified dividends by $23.00. Instead of 175, they are 152. At 15% tax rate, that makes the tax difference $3.30. Do I really have to file ANOTHER amended return for this small of a difference? Sandy

Reply to
sandybeth
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For $3 I would not bother to amend. It costs the IRS about $35 to process each amended return.

Reply to
Arthur Kamlet

That seems cheap. How do they do it? Wouldn't it depend on the complexity of the return?

Reply to
removeps-groups

And the degree of accuracy, and speed. All three factors are part of the cost/benefit equation. I suspect there are more, for example tax year and refund or balance due on the new version.

-Mark Bole

Reply to
Mark Bole

What about $193? It seems too large to ignore, but I have no comparisons, and haven't seen any IRS information about a lower limit.

If the state return is amended also, that would be $60 extra. It seems sensible to amend it because if only federal is amended, the state carry- forwards to 2009 would be different from federal ones (capital loss carry- forward in this case), which sounds messy.

Reply to
MyVeryOwnSelf

If I amend for myself or a client to get a refund, the cost to the IRS is irrelevant to me, only my time counts. If I can amend and get back (net) the price of dinner out at someplace more than a fast food place, I'll do it.

-Mark Bole

Reply to
Mark Bole

I should've stated that the question is about extra payment to the tax collector (not a refund).

Reply to
MyVeryOwnSelf

According to others in this group, there are some threshold amounts below which the IRS won't necessarily pursue an underpayment. The tax tables themselves (for most taxpayers under $100K taxable income) have $50 steps built in (i.e. your income might rise or fall by that much and still not change your tax).

Obviously these thresholds are not publicized. For $193 additional balance due, I would file an amendment, and the state too, in your example.

I saw a client this year with a letter from the IRS saying, basically, "you have a $105 credit, your tax due is $105, and oh by the way you owe us $8 interest on the transaction so send us $8".

I was ready to track it down since my initial recollection was that the client shouldn't have owed it, but he said it wasn't worth his time.

-Mark Bole

Reply to
Mark Bole

When I saw the subject, I wondered if you were having soldiers staying at your home without permission. :-)

[posted as tax humor-- but at first I really did suspect it was a post about a Bill of Rights thing.]
Reply to
DF2

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