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Financial Planning / Tax Strategies


Subject:  Amend Return or Wait and see? Date:  4/16/1998  5:31 PM
Author:  CodyZen Number:  3561 of 127618

Isn't it great to have your taxes done? Well, almost. While doing my 1997 return, I discovered that I failed to report the sale of some stock on my 1996 return. Now, I know that the best thing to do is to file an admended return.

But...the sale was a result of the ATT spin off of Lucent. They distributed whole shares and paid cash for partial shares. The proceeds from the sale were a total of $2.46. I haven't calculated the cost basis for the partial share that was sold. I accummulated the ATT through their DRIP over a 20 year period, and I'm not looking forward to the calculation. Its possible that I even had a gain on the sale. I know this doesn't matter and that I should file an amended return. Even with a $0.00 cost basis the most I would owe is $.76 plus interest and penalties. And it is very likely that there is no tax liability. To me the amounts just don't seem material.

So any opinions on whether I should go through all the work of filing the amended return now, or just wait until the IRS sends out the notification letter that I owe them $.76 plus interest and penalties?
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