We had our taxes done last week and the $$ was direct deposited into our account already. When I got home yesterday there was a w-2 in the mail from unemplyment I received for the month of January that I COMPLETELY forgot about $2000 with 0 taken out for federal so obviously I owe something, but I dont know how do I start all over if they have already been done and even already got my refund, or should I just wait and see if they even catch it and then pay it when they catch it????
2007-01-26 02:21:48 · 13 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
I would take care of it now. You should be able to file an amended return. The W-2 is also sent to the IRS, so they'll compare it to your wages reported in your tax return and they will catch it. I'd just take care of it now instead of dealing with the pain of an audit.
2007-01-26 02:29:02 · answer #1 · answered by yogidog 2 · 2⤊ 0⤋
File an amended return before April 16. It's likely whomever prepared your return will do it for a nominal fee. It isn't a big deal. If you file an amended return before 4/16 there won't be any penalties, other than possibly underpayment. If you owe less than 1,000 there is no underpayment or late payment if you refile by 4/15, and no interest.
The IRS will not "audit" you over a missed income item like unemployment. They won't have to. The basic computer comparison they do will catch it and the computer will spit out a letter to you informing you that you now owe them money. If the IRS does not catch it until after 4/16, you will at a minimum owe them interest.
The income is electronically reported to the IRS by the state that paid it. The state is not required to report the information to the IRS until 2/28. But the IRS will catch it, and you'll receive a notice telling you that you owe money.
Save yourself the hassle and just file the amendment, it isn't a big deal unless you amend for a large refund or for an item of some question.
2007-01-26 03:08:19 · answer #2 · answered by smh60437 3 · 0⤊ 0⤋
Yes, amend your return as soon as possible, and do it before the deadline for this year to avoid any interest or penalties.
If you don't amend the return, they WILL catch it, although it might take a year or two before they do the matches for 2006. Then you'd get a letter from the IRS telling you how much additional you owe, probably with interest and maybe a penalty added. The person who said they won't worry about $2000 is wrong. The computers do that part of the match and generate the letters when they find discripancies, so it isn't something that takes them a lot of effort to find.
2007-01-26 05:08:11 · answer #3 · answered by Judy 7 · 0⤊ 1⤋
Please return to the place who did your taxes and have them file an Amended Tax return, to both Federal and State. This is going to cost you some $$, and it will have to be a paper return (mailed), so if you are getting any more money back, it will be 8-10 weeks before you can hope to see it.
It is better to wait a little while, at least until Feb 1, before filing. A lot of kinks are worked out of everyone's system and remember Congress is still changing tax law for 2006 filers, so......
Good Luck & Blessing
2007-01-26 03:02:31 · answer #4 · answered by Wood Smoke ~ Free2Bme! 6 · 0⤊ 0⤋
DEFINITELY it's best to file an amended return. Your tax preparer can handle this easily, or you can use online software like TAX CUT or TURBOTAX. Pay the money you owe. If they catch it, it may take months or years, and you will owe interest and (quite possibly) penalty. You might wait a little before filing the amended return to see if other documents come to light or get corrected, but do it before April 15. Don't spend the refund money ;-)
2007-01-26 02:34:50 · answer #5 · answered by Observer in MD 5 · 1⤊ 0⤋
The income will eventually be checked against your return and you may receive a letter from the IRS. It may take a couple of years.
Amend the return using Form 1040X and add the income you missed. It is not necessarily the case that you will owe money, you may owe little or nothing, or get more of a refund, depending on other factors on your return.
You have three years to amend the return, but I would amend it soon. But no great rush, since it will not be looked at for several weeks anyway.
2007-01-26 02:29:11 · answer #6 · answered by ninasgramma 7 · 2⤊ 1⤋
File an ammended return using Form 1040X. While the IRS will eventually catch the error and bill you, if it's after April 15th there will be penalties and interest due. As long as you clear it up before April 15th, there won't be any interest or penalties involved; you'll only have to pay the additional tax.
2007-01-26 03:05:34 · answer #7 · answered by Bostonian In MO 7 · 1⤊ 0⤋
Amend your return now. As long as your amended return is postmarked, and you have paid the additional tax by April 15, the IRS won't assess any late payment penalties or interest. If you wait until the IRS figures it out and comes to you asking for the money, you can be sure that they will charge you interest and penalties.
2007-01-26 05:47:38 · answer #8 · answered by jseah114 6 · 0⤊ 0⤋
My husband and i had the same thing happen to us last year. The H & R block lady told us to file an amended return right away. If you dont you risk late fees, an audit and tons in fines. It stinks big time but the best thing is to just do it and get it done now. Good luck.
2007-01-26 02:31:28 · answer #9 · answered by ? 3 · 2⤊ 0⤋
Well it matters what exactly you are asking, are you asking what is the right thing to do or what would I do?
I would let it slide and chances are 99% of the time they will not audit you over 2,000 of income. If you want to do the "right" thing then you should ammend the 1040's and resend, either way there wont be any penalty if they catch it, they will just bill you for what you owe probably 150-200 dollars in additional taxes.
2007-01-26 02:29:38 · answer #10 · answered by Scott K 2 · 0⤊ 2⤋