Hey All,On a recent thread about missing/not reporting a 'Cash in Lieu' transaction of $55, I received excellent instruction about how to proceed. Unfortunately, as I was looking into my return data and comparing it to the returns I prepared from earlier years, I realize how dumb I really am....Unfortunately I think I have uncovered several omissions in previous years (returns for 2009, 2010, and 2011). Anybody that wants to stop reading and go on to another thread is certainly excused (and I really don't blame you... some folks just need to let an accountant do their stuff....and one of them may be me)...none-the-less.... Anyway, the whole thread (though possibly not necessary for this question) is here:http://boards.fool.com/gross-proceeds-1099-b-help-30541365.a...As I looked closer at the documents/1099 from my E*trade taxable account (my only taxable brokerage account), I see there are dividend & distribution totals of about $6-7 a year (in each of the above mentioned years)...when I then open my saved efile pdfs, I see that I did not report them on my returns.. ie- did not report $6-7/year dividends in the years 2009, 2010, 2011 and 2012.So, at this point...... do I need to a) contact the IRS and discuss my error(s)b) hire an accountant to fix this messc) figure out how to file amended returns for each of above listed years (I recorded and paid the taxes on all dividends for the years before 2009....have TT records from 2000-present)d) ignore it all..OK, not the correct answer, but I'm feeling sad..All answers or offered advice will be very much appreciated and of course any scolding or snickering will not be offensive to me in anyway...many thanks in advance...Mick
As I looked closer at the documents/1099 from my E*trade taxable account (my only taxable brokerage account), I see there are dividend & distribution totals of about $6-7 a year (in each of the above mentioned years)...when I then open my saved efile pdfs, I see that I did not report them on my returns.. ie- did not report $6-7/year dividends in the years 2009, 2010, 2011 and 2012.So, at this point...... do I need to Tax law answer. Amend the returns, state and Federal. Mail each in a separate envelope with a check for any additional tax due. They'll bill for interest if they want it. Your deadline for mailing the 2009 amendment is 4/15/2013.Taxpayer answer. Chalk it up to experience, but do not file amended returns, which will cost more to process than any additional tax due. If those dividends were reinvested don't include them when calculating basis for your shares. If your conscience needs salving, send a check to reduce the national debt. The address is in the 1040 instructions.PhilRule Your Retirement Home Fool
What Phil said.Ira
d) ignore it all..OK, not the correct answer, but I'm feeling sad.. The mistakes are small, and were honest mistakes. If the IRS finds the error and considers it worth their computers effort, they will send a statement for the taxes and penalties.
You're pulling our leg here, right? You realize you are talking about a *maximum* tax increase of a dollar for each of those years. (Except the $55, that could be more.)If you are serious, have a drink, or several. Smoke something if it is legal in your state. Maybe a rx for Valium? Chillax. Fuggetabutit. Go live life. If the IRS sends you a bill for a few bucks, pay it. Buy the person behind you in line a latte or something. This is way too much angst over something that amounts to a rounding error, if that. In case I haven't been clear, do not contact the IRS, do not hire an accountant for this, do not amend any return. IGNORE IT ALL! Move on and file correctly in the future.
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