Corrected 1099

[ILLMAS]

I have a TP that got a corrected 1099, the difference is only $430, they reported $430 less on her 1099 originally, the difference does not have an impact on her tax return. It's it worth to amend the tax return to show an additional $430 or let the IRS make the correction?

[TAXBILLY]

Are you saying that the client reported the original 1009-MISC income instead of what she actually got?

taxbilly

[zeke]

>>the difference does not have an impact on her tax return. <<

The easiest way for this to be true is if taxpayer originaly reported the correct income, in which case no amendment is required. I leave it to Jainen to examine other cases....

zeke

[J R Sandoval EA]

I have a TP that got a corrected 1099, the difference is only $430, they reported $430 less on her 1099 originally, the difference does not have an impact on her tax return. It's it worth to amend the tax return to show an additional $430 or let the IRS make the correction?

The difference should have an impact on social security tax if income is subject to SS tax.

[Gail in Virginia]

Just for argument's sake, it could be a 1099-INT, and it could not make a difference because the taxpayer had sufficient deductions to put her in a no-tax situation. And if the case is something like that, I probably would not bother to amend it.

[Wayne Brasch]

I have a TP that got a corrected 1099, the difference is only $430, they reported $430 less on her 1099 originally, the difference does not have an impact on her tax return. It's it worth to amend the tax return to show an additional $430 or let the IRS make the correction?

MAS,

Since there are several different Form 1099s, which one is involved in this situation? The answer to that question will give all of us a chance to give you the correct answer you are seeking.

Wayne Brasch

[ILLMAS]

MAS,

Since there are several different Form 1099s, which one is involved in this situation? The answer to that question will give all of us a chance to give you the correct answer you are seeking.

Wayne Brasch

Sorry, it is 1090-Misc line 7 nonemployee compensation. I double checked the return and there is a change to SE tax by a very little amount.

[Wayne Brasch]

Sorry, it is 1090-Misc line 7 nonemployee compensation. I double checked the return and there is a change to SE tax by a very little amount.

MAS,

In that case, I would amend the return before IRS does it for the taxpayer and charges them extra penalty and interest.

Wayne Brasch

[jainen]

>>I leave it to Jainen to examine other cases....<<

I'll wait for the answer to taxbilly's excellent question.

[mcb39]

As Jainen points out, Taxbilly had a very good point. I keep a set of books for my business.; as well as my husband's business. I really pay very little attention to the few 1099's that arrive in January. I KNOW what my income was and unless there would be a 1099 Misc with an inflated amount, it would have nothing to do with the way that I prepare my tax return.

IMO, the tax return in question should be amended for the sake of honesty and peace of mind. It doesn't matter if it is a small amount or a large amount, it is an incorrect amount. I, personally, did not appreciate dealing with the CP2000s that had to be responded to by April 8 this year; right at the height of the business at hand.