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Copied from The Tax Advisor: "Under the de minimis rules, added by the Protecting Americans From Tax Hikes (PATH) Act, P.L. 114-113, payers are not required to correct an error on an information return or payee statement and are not subject to penalties for failure to file a correct information return or payee statement if the error relates to an incorrect dollar amount and is no more than $100 ($25 for withholdings)." Good, a common sense ruling from the IRS

@kathyc2This is a known problem with the CA FTB. They don't get the 592Bs electronically, so they can't match the withholding to the return and it kicks it out with a balance due notice. A lot of times, the taxpayer is from out of state and challenging the FTB will cost more than the amount of the tax bill, so they just pay the bill. If you want to get the money back, you have to mail a letter to the FTB with all the documentation and wait for them to read the letter, respond to the letter, and then issue the refund. Takes time. Every morning when I wake up, I thank God that I did not wake up in California. Tom Longview, TX

The accountant in me rebels at that statement. I have always lived by the motto "keep track of the pennies and the dollars will follow". I think it shows professionalism that your reconciliations tie out, to the penny. When I see recons that are close, but not exact, I question whether the accounting person is competent. Just like spelling and grammar errors on a resume, it says something. However, I do know when to throw in the towel and just write it off to Misc Expense when the amount in question is small and I can't identify the reason for the variance. Tom Longview, TX

Most likely because the counters decided those numbers were at or below their break even point for investigation. No matter the reason, it is good. My first accounting class had a story of a perfectionist who spent a long time finding a penny error, and their pride led to their firing. For me, I took that to heart and when I was counting for others, came up with a threahold which I would not investigate beyond a few minutes of hunting the obvious. Over time, the “adjustments” usually washed.

UGH. One of our kids is dealing with a break in/theft, and the person who they can prove did it, is related to a muckety muck in their local law enforcement. We have given them our suggestion (ask the DA who their mutual aid agency is, which should be compelled to investigate), and get their landlord and renters insurance folks involved. Calm is over...