Income Tax Question

[Snapdragon]

If someone did their taxes and filed them, and then a bank interest statement for $24 came in the mail the next day, would it be worth filing an amended return? Does the IRS get that interest information, or only if you are audited? Asking for a friend. (Really.)

 

[femurphy77]

I wouldn't tell them anything. Taxes are just slavery in another form. FREE HAT!

 

[jkaetz]

So you owe them another $2-3 for that $24 in interest? They won't notice or care. It would nearly cost more in postage to try to collect from you.

 

[KittySlayer]

If someone did their taxes and filed them, and then a bank interest statement for $24 came in the mail the next day, would it be worth filing an amended return? Does the IRS get that interest information, or only if you are audited? Asking for a friend. (Really.)

The bank reports it to the IRS. The IRS does matching of information returns (1099) to what you reported on your tax return (1040). The IRS sends a notice of proposed changes based on matching and a bill for additional tax along with interest and maybe a penalty.

The tax, interest, and penalty will be small. Wait for a letter from the IRS later this summer and send them a check if they catch your omission.

(I didn't stay at a Holiday Inn but I am a CPA)

 

[DCR]

Many years ago I got a notice in 5-tuplicate from the IRS trying to collect.......wait for it..............9¢.

 

[singlestacksig]

you can not file an amended tax return electronically , so the printing cost & postage would be greater than the effect on your taxes.. If you really want to report it, do so on next years return & just put a statement that the information came to you after you filed your taxes..

 

[Sigblitz]

I think it could be too low to be reportable. Check the instructions for an amount over x amount.

 

[Alpo]

The bank reports it to the IRS. The IRS does matching of information returns (1099) to what you reported on your tax return (1040). The IRS sends a notice of proposed changes based on matching and a bill for additional tax along with interest and maybe a penalty.

The tax, interest, and penalty will be small. Wait for a letter from the IRS later this summer and send them a check if they catch your omission.

(I didn't stay at a Holiday Inn but I am a CPA)

Correct answer. (AICPA alumnus, ret.)

 

[KittySlayer]

Correct answer. (AICPA alumnus, ret.)

We accountants are ready for anything.

 

[Snapdragon]

Thanks, guys. I will advise accordingly.

 

[DCR]

I think it could be too low to be reportable. Check the instructions for an amount over x amount.

The limit is $10

 

[Mark-DuCo]

You will be getting a call from a guy you can't understand from the IRS, just buy the giftcards like he says and everything will be OK.

 

[JettaKnight]

The limit is $10

That's the limit at which banks are required send you a 1099-INT.

https://www.irs.gov/taxtopics/tc403

 

[JettaKnight]

If someone did their taxes and filed them, and then a bank interest statement for $24 came in the mail the next day, would it be worth filing an amended return? Does the IRS get that interest information, or only if you are audited? Asking for a friend. (Really.)

Here's a reason to not file so early.


I would suggest going through the process of filling out a 1040X to at least see how it changes things.



But, of course, I love filling out 1040's, so YMMV.