ILLMAS Posted May 6, 2009 Report Share Posted May 6, 2009 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? Quote Link to comment Share on other sites More sharing options...
TAXBILLY Posted May 6, 2009 Report Share Posted May 6, 2009 Are you saying that the client reported the original 1009-MISC income instead of what she actually got? taxbilly Quote Link to comment Share on other sites More sharing options...
zeke Posted May 6, 2009 Report Share Posted May 6, 2009 >>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 Quote Link to comment Share on other sites More sharing options...
J R Sandoval EA Posted May 6, 2009 Report Share Posted May 6, 2009 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. Quote Link to comment Share on other sites More sharing options...
Gail in Virginia Posted May 6, 2009 Report Share Posted May 6, 2009 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. Quote Link to comment Share on other sites More sharing options...
Wayne Brasch Posted May 7, 2009 Report Share Posted May 7, 2009 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 Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted May 8, 2009 Author Report Share Posted May 8, 2009 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. Quote Link to comment Share on other sites More sharing options...
Wayne Brasch Posted May 8, 2009 Report Share Posted May 8, 2009 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 Quote Link to comment Share on other sites More sharing options...
jainen Posted May 8, 2009 Report Share Posted May 8, 2009 >>I leave it to Jainen to examine other cases....<< I'll wait for the answer to taxbilly's excellent question. Quote Link to comment Share on other sites More sharing options...
mcb39 Posted May 8, 2009 Report Share Posted May 8, 2009 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. Quote Link to comment Share on other sites More sharing options...
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