Missed 1099 form. How much trouble could I get in?
January 8, 2013 8:27 AM Subscribe
Missed 1099 form. How much trouble could I get in? (You are not my tax lawyer. Understood but seeking advice)
posted by anonymous to Law & Government (15 answers total)
Background: I am a student who works part-time, and my annual income is below the federal tax rate. Although not necessary, my parents insisted I file a tax return for 2011, which they helped me submit to the IRS before last year's deadline. Recently going through old paperwork from the last year (and being extremely unorganized), I realized I forgot to include the amount from a 1099-INT form I received last year; $125 as a promotion for opening a new bank account. As of now, I have not been contacted about the IRS for missing this form or reporting incorrect income amounts. After doing research it appears I may be able to file an amended return, but I'm unclear on whether I will be penalized for not reporting this sooner. Given my circumstances and the fact that even with the $125 I would not qualify for federal taxes, I'm unsure if it's better to try to amend the return at this point; I've heard from some the IRS automatically matches up 1099 forms with the amount you report, and others who claim that in my situation its unnecessary to report it and that if I do I risk the immediate penalty. The latter's argument is that if I was going to hear from the IRS about this, I would have heard already and they simply neglected to notice this error on my part. Please let me know what you think my best course of action is and if further information would be helpful. Thank you!