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Author: Inpho Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121216  
Subject: to amend or not to amend? Date: 2/17/2003 8:04 PM
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Hello all,

I just filed my federal 1040 electronically through Turbo Tax yesterday. As I was putting away all of my records I realized that I failed to include as income a 1099 that I got from a savings account. The amount of interest on the 1099 is not a large amount, about $150. Should I file an amended return and pay back the appropriate amount of the refund I got (probably about $15), and if so when should I do that? Should I wait until the refund is processed and I receive it through direct deposit? Does filing an amended return increase the chance of an audit (not that I have anything to hide :-). Just curious about the process because I've never had to file one before. TIA for the help.

Inpho
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Author: lorenzo2 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 63929 of 121216
Subject: Re: to amend or not to amend? Date: 2/17/2003 8:53 PM
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Yes, you should amend, but if you've just efiled, give them a chance to process it; the last thing you need to do is confuse the IRS by amending something they haven't gotten to yet. Admitedly there's not much chance of that; it's most unlikely that a paper amended return would pass a electronic return in the queue. Still, best to wait until you've seen your refund deposited. The amendment process is very simple and logical, as you'll see when you look at the form. I don't think it increases your chances of being audited. On the other hand, failing to report that income is almost certain to get their attention, which is always a Bad Idea ;-)

Lorenzo

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Author: irasmilo Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 63932 of 121216
Subject: Re: to amend or not to amend? Date: 2/17/2003 10:16 PM
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Yes, you should amend, but if you've just efiled, give them a chance to process it; the last thing you need to do is confuse the IRS by amending something they haven't gotten to yet. Admitedly there's not much chance of that; it's most unlikely that a paper amended return would pass a electronic return in the queue. Still, best to wait until you've seen your refund deposited. The amendment process is very simple and logical, as you'll see when you look at the form. I don't think it increases your chances of being audited. On the other hand, failing to report that income is almost certain to get their attention, which is always a Bad Idea ;-)

I'll take a different position. While technically (and legally) you should file an amended return, and if you do, you should follow Lorenzo's suggestions, I will suggest that you not file an amended return.

First, calculate what the actual difference in tax will be. If it is only $15 as you suspect, I would ignore the 1099 for now. About a year from now the IRS will complete its computerized document matching program for 2002 and will identify the missing 1099. It may send you a letter asking for the additional tax due. On the other hand, there is a minimum difference which it will ignore. I don't know what the minimum is, but $15 may be under it. If you get the letter, pay up; if not, consider yourself lucky.

Ira

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Author: Inpho Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 63948 of 121216
Subject: Re: to amend or not to amend? Date: 2/18/2003 4:59 PM
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Thanks for the replies. I'm going to wait until I receive my refund and then file an amended return with a check. I appreciate the advice...

Inpho

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