Author Topic: Forgot to submit 1099 DIV with my tax return. What do I do now?  (Read 934 times)

the_fella

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I have the 1099 DIV in question, I just forgot to include the information from the form on my taxes. Do I file an amended return or should I just prepare to go to prison?
« Last Edit: February 11, 2019, 11:14:23 AM by the_fella »

dandarc

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Re: Forgot to submit 1099 DIV with my tax return. What do I do now?
« Reply #1 on: February 11, 2019, 11:19:04 AM »
Once inside, make sure you befriend someone who has been known to acquire certain things from time to time.

the_fella

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Re: Forgot to submit 1099 DIV with my tax return. What do I do now?
« Reply #2 on: February 11, 2019, 01:52:21 PM »
Seriously, do I file an amended return it wait for the IRS to contact me?

phildonnia

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Re: Forgot to submit 1099 DIV with my tax return. What do I do now?
« Reply #3 on: February 11, 2019, 02:26:06 PM »
As Douglas Adams would say, DON'T PANIC!  File an amended return, obviously. 

The Golden Rule here is: if you tried to do things right, you're not going to prison.  Maybe just a beat-down and a night in a holding cell.  Just kidding, you're fine.  You're not the first person to inadvertently leave something off your return.

Get your amended return in by April 15, and pay the difference, and there will be no penalties or interest.   Just like if you did it right the first time.  Well, except for the damage from the tear gas they fire through your windows.

If you fail to do that ... well, the IRS no longer sends dobermans into the houses of tax-cheats like you.  They'll most likely send you a bill and charge you a perfectly reasonable interest rate.  They do still send nasty letters.  Take these seriously, but DON'T PANIC!
« Last Edit: February 11, 2019, 02:28:25 PM by phildonnia »

walkwalkwalk

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Re: Forgot to submit 1099 DIV with my tax return. What do I do now?
« Reply #4 on: February 11, 2019, 08:18:17 PM »
If you do it by hand remember to use the capital gain rate if the dividends were qualified. But I'm sure you already knew this.

MustacheAndaHalf

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Re: Forgot to submit 1099 DIV with my tax return. What do I do now?
« Reply #5 on: February 12, 2019, 07:29:26 AM »
You will want to file 1040-X to amend your return.  Not only did you catch it first, but you caught it before the April tax filing deadline.  If you forgot it past the deadline, my guess is the IRS would issue a sort of "automatic audit" suggesting you didn't list your dividends, and how much they think you should pay in additional taxes.

Years ago when I filed 1040-X, it had to be sent through the mail.  Does 1040-X have an electronic filing option yet?

walkwalkwalk

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Re: Forgot to submit 1099 DIV with my tax return. What do I do now?
« Reply #6 on: February 12, 2019, 09:48:06 AM »
You will want to file 1040-X to amend your return.  Not only did you catch it first, but you caught it before the April tax filing deadline.  If you forgot it past the deadline, my guess is the IRS would issue a sort of "automatic audit" suggesting you didn't list your dividends, and how much they think you should pay in additional taxes.

Years ago when I filed 1040-X, it had to be sent through the mail.  Does 1040-X have an electronic filing option yet?
Sadly, no.

phildonnia

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Re: Forgot to submit 1099 DIV with my tax return. What do I do now?
« Reply #7 on: February 13, 2019, 03:05:08 PM »
... Not only did you catch it first ...

I think the IRS really appreciates voluntary amendments.  I once discovered an error on my return over two years late, and I sent in an amendment with an additional payment.  They could have nailed me with a huge penalty, but instead just sent me a bill for interest owed.  Your mileage may vary.

dogboyslim

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Re: Forgot to submit 1099 DIV with my tax return. What do I do now?
« Reply #8 on: February 14, 2019, 10:49:10 AM »
I did this last year after already receiving my incorrect refund.  I got my 1099 Div, but forgot that I had sold out a position in the stock of my prior carrier, with puchases over 5 years.  It took longer for them to mail it, and with me moving didn't receive it until late February after I had already done everything else.  I filed the amendment with federal and state, sent in the check for the additional tax, and that was that.  All I got was an acknowledgment that they had received my amendment, and they did cash the checks.  Absolutely file the amendment before anyone contacts you.  You know about it now, so just fix it.

No harm no foul.

the_fella

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Re: Forgot to submit 1099 DIV with my tax return. What do I do now?
« Reply #9 on: February 16, 2019, 10:37:17 AM »
My cousin is a CPA. I talked to her and she said that since it's such a small amount of money (less than $100), it wouldn't change my taxable income by very much, and that I shouldn't worry about it? I'm not sure about that...

walkwalkwalk

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Re: Forgot to submit 1099 DIV with my tax return. What do I do now?
« Reply #10 on: February 16, 2019, 01:18:55 PM »
My cousin is a CPA. I talked to her and she said that since it's such a small amount of money (less than $100), it wouldn't change my taxable income by very much, and that I shouldn't worry about it? I'm not sure about that...
If it is qualified dividend it may not change the amount you owe at all... Without knowing specifics can't say how it would impact you.

secondcor521

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Re: Forgot to submit 1099 DIV with my tax return. What do I do now?
« Reply #11 on: February 17, 2019, 10:59:03 AM »
My cousin is a CPA. I talked to her and she said that since it's such a small amount of money (less than $100), it wouldn't change my taxable income by very much, and that I shouldn't worry about it? I'm not sure about that...

I would file even if the amended return resulted in no change in tax due.  I always try to have the numbers on my return match the numbers that the IRS receives from 1099s and other sources.  If the numbers don't match it's my understanding that their computer will spit out a letter and a bill.

YttriumNitrate

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Re: Forgot to submit 1099 DIV with my tax return. What do I do now?
« Reply #12 on: February 17, 2019, 11:45:12 AM »
My cousin is a CPA. I talked to her and she said that since it's such a small amount of money (less than $100), it wouldn't change my taxable income by very much, and that I shouldn't worry about it? I'm not sure about that...
So you're talking about maybe an $15 extra in taxes? You might get a robo letter saying you owe some taxes. Based on my previous dealings with the IRS (once forgot to submit cost basis for stocks sold), the people at the IRS are smart enough to know when the cost of pursuing a matter will far exceed the amount they can hope to recover.

Miss Piggy

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Re: Forgot to submit 1099 DIV with my tax return. What do I do now?
« Reply #13 on: February 17, 2019, 05:18:15 PM »
My cousin is a CPA. I talked to her and she said that since it's such a small amount of money (less than $100), it wouldn't change my taxable income by very much, and that I shouldn't worry about it? I'm not sure about that...

I would file even if the amended return resulted in no change in tax due.  I always try to have the numbers on my return match the numbers that the IRS receives from 1099s and other sources.  If the numbers don't match it's my understanding that their computer will spit out a letter and a bill.

Yes. File the amendment. I unknowingly neglected to file a 1099-DIV, and about 3 years later, received a letter from the IRS. The 1099-DIV was for less than $50, but if I remember correctly, I had to pay a small penalty, plus the PITA factor of trying to track down the document. Save yourself a little trouble down the road and fix it now that you've noticed it.

Much Fishing to Do

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Re: Forgot to submit 1099 DIV with my tax return. What do I do now?
« Reply #14 on: February 18, 2019, 01:20:36 PM »
I agree to fix it but I'd wait a month...you dont want to go thru all that and then end up with even another tax document showing up...I frankly don't even consider filing until March 15 b/c of how often there is like one extra tax doc I didnt realize was coming that shows up at the end of feb or the like