MsTabbyKats Posted August 15, 2015 Report Posted August 15, 2015 I know there is a certain per centage or amount of income that doesn't get one "in trouble if not reported". (I don't think I dreamed this.)I'm taking specifically about interest income.If someone has an AGI of about $150K.....what would this amount be?Would $50 interest/$13 tax be too insignificant to worry about? Quote
MsTabbyKats Posted August 15, 2015 Author Report Posted August 15, 2015 I'm probably not clear.Client is not hiding income. She just found out about a bank account that generates $50/income year....and the statements were going to an estranged relative's home.So far I never had a client receive a letter from the IRS saying they failed to report such a small amount.I know that I've seen somewhere....that the IRS allows some small amount to be "omitted".I can't find anything in writing...but I know I saw this (years ago). Quote
ILLMAS Posted August 15, 2015 Report Posted August 15, 2015 Me neither, I would not sweat it. I have seen a few 1099s and 1099r notices only. Quote
Gail in Virginia Posted August 15, 2015 Report Posted August 15, 2015 I know that I saw just the other day that those are the amounts that are considered as small enough that you don't need to have an 8829 re-signed if you make a change on a return. So they probably will not generate a letter. BUT if a letter is generated for any other reason, they will be added to the changes. I too, would probably correct it going forward, and otherwise ignore it unless the IRS brings it up. 2 Quote
FDNY Posted August 15, 2015 Report Posted August 15, 2015 (edited) I believe the amount may be $49 of tax, not taxable income where they may just let it go. Years ago (maybe 30+) I was audited and it turned out that IRS owed me $35. Auditor said since amount is under $50 they don't pay and would be same vice versa. Edited August 15, 2015 by FDNY explanation 1 Quote
Catherine Posted August 17, 2015 Report Posted August 17, 2015 My understanding is also that the magic number is $50 (or more) difference in tax. Really, under that, it's not worth their time to process. States may be fussier. And definitely fix it going forward, starting with updating that address! 2 Quote
Max W Posted August 17, 2015 Report Posted August 17, 2015 The de minimus rule is $50 in income. http://www.irs.gov/Tax-Professionals/2014-IRPAC-Public-Report-Burden-Reduction-Subgroup 1 Quote
easytax Posted August 17, 2015 Report Posted August 17, 2015 The de minimus rule is $50 in income. http://www.irs.gov/Tax-Professionals/2014-IRPAC-Public-Report-Burden-Reduction-SubgroupUnderstood and THANKS.Do you have a cert. for when/if these recommendations are approved? Quote
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