Discussion:Amended Required ??

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Discussion Forum Index --> Basic Tax Questions --> Amended Required ??
Discussion Forum Index --> Tax Questions --> Amended Required ??

Rgtaxservice (talk|edits) said:

8 April 2009

One of my FL clients whose return was completed in February mailed me a 1099INT reporting $46 in interest income that was not reported on his original return. The additional $47 results in net tax change of $12 that the client would have to pay.

Now somewhere in my head is a tid-bit of knowledge that amended returns were not required if the missing income was less than $50 and/or the net change in the tax liability was less than $15. I don’t know why I know this or if it’s even true.

I haven’t been able to verify this. The truth is I can’t remember if it was old IRS rule, or maybe a state guideline for a return I read once along ago. I can’t even remember when or how I might have come across this tid-bit. Heck, I may have dreamt it up one night while doing taxes in sleep.

Does any of this ring a bell with anyone? I ask only because if an amended isn’t required, then I won’t do one, otherwise I most definitely will.

Kevinh5 (talk\|edits) said:	8 April 2009
in the time it took you to write this you could have printed a 1040-X and State-X. Especially if you are using the same software as last year.

Kevinh5 (talk\|edits) said:	8 April 2009
no state for FL (I know) but maybe she lived somewhere else last year?

Lucky (talk\|edits) said:	8 April 2009
Just tell the client they are going to receive a notice from the IRS asking for the $12. Advise client to pay it when they receive notice.

Brock And Associates (talk|edits) said:

8 April 2009

Good grief Charlie Brown...are we not Accountants here?!?

The correct answer is that we fill out the 1040-X and charge the client $100 to do it--call it a stupid tax!! :D

For that kind of money, I wouldn't even worry about it and I bet that the IRS probably will not either. If the IRS finds it and deems it worthy of a correction letter, the interest would be less than my fee to file the amended return.

Michael

Rgtaxservice (talk\|edits) said:	8 April 2009
The 1040X was already done, just not printed. I was just hungup on that tid-bit in my head.

Death&Taxes (talk\|edits) said:	8 April 2009
IRS does not bill when the additional tax is less than $100; I have that in writing on at least two cases, one an office audit and the other a CP2000. That doesn't mean you have carte blanche, or rather the client has carte blanche, to do nothing, and if the client is worried enough to send it to you, oblige him by taking the worries off his mind.

Irsfixer (talk\|edits) said:	8 April 2009
The cost of processing will far exceed the tax due. They are very unlikley (read no chance) to get a notice on it. If they do - just pay it. Have the client add $12 to next year's taxes if they feel guilty it.

Brock And Associates (talk\|edits) said:	9 April 2009
Well, I just found out that I will be 'accidentally' understating my income on my W-2 so that it creates a $99.99 tax shortage each year going forward! :D Michael