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Financial Planning / Tax Strategies
|Subject: Re: 1099 in October||Date: 10/12/2013 4:37 PM|
|Author: TMFPMarti||Number: 119290 of 122522|
I just received a corrected 1099 for 2012!
Congratulations! That's the latest one I've heard of.
It changed approximately $43 of Covanta Holding (CVA) distributions from return of capital to qualified dividend. This means I owe about $6 more in taxes. Is there any limitation on how late a corrected 1099 can be issued?
Evidently not. There's bound to be a date beyond which the IRS doesn't care, but I have no idea what date that is.
Aren't companies and brokers supposed to report this information in a timely manner?
Yes. There's even a penalty imposed on them if they don't. I also hear there are unicorn races this weekend.
Since it is obviously well past the April 15 deadline; what are the rules on when I need to file an amended return and how do I avoid penalties?
There's no specified time period after you become aware of the error, but there's no need to let it go on forever. There will be no penalty. Just pay the balance due when you file. They may or may not bill you for the interest. Probably not at this amount.
Actually, today I probably wouldn't even bother amending. It will cost them close to, if not more than what you owe to process the thing. Unless you work for the IRS, where I saw people disciplined for overlooking a 1099 that didn't even change the amount of tax, I wouldn't bother. Don't worry just because you're nominated to be Secretary of the Treasury. Important people don't have to follow the same rules as the drones.
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