What are the penalties for not filing a 1099-R?

Question

Better yet, can we file our 2006 in 2007 and just pay a penalty? We were suppose to get back nearly $7000, before I added the information from the 1099-R. Now we owe $1570. We could truly use the refund monies if at all possible. Any other suggestions would be great as well. Thanks

Answer 1

No, you can't postpone that. You're not entitled to a refund this year. Pay the tax due by April 17, 2007 to avoid penalties and interest charges.

If you need the money that badly, you should have hung on to the distribution from the retirement account.

Answer 2

Knowingly filing a false return would likely be considered fraud. Don't mess with the IRS. They're really not so bad to deal with most of the time, but I imagine they're sheer hell to work with if they think you're trying to scam them.

Filing before you receive documents that would impact your figures is ok, but you are expected to file an amendment promptly, and pay the appropriate taxes at that time.

You might get lucky and get your refund now, but if you've received the 1099R, most likely so has the IRS (the employers send the IRS a copy directly as well as to you). So, your return would probably get flagged immediately, they'll make the corrections themselves, and send you the bill. If that's after April 15, you owe penalties.

IRS penalties and interest are about 18% annually, combined. That's an expensive loan, that you aren't entitled to, and will probably not even get.

Anyone receiving 1099 income should always be putting 20-30% of that money aside for taxes as it comes in, or even pay it as an estimate to the IRS during the year.

Bottom line, file your taxes correctly. If you don't have the $1570 to pay, file it anyway and work out a payment arrangement with them.

Answer 3

You are asking us if it is OK to not pay taxes on money you earned. That's called tax evasion. If you get caught not reporting it, you could get in big trouble. You owe the taxes and should have saved some of that money earned to pay them. The difference in getting back $7000 vs. owing $1570 is HUGE, so I'm guessing that was like what, a $30,000 to $40,000 1099?? The only thing to offset that is to have enough deductions to cover it, like charitable giving, mortgage interest, etc.

Answer 4

You Must report all income earned and or paid to you on the current tax return, You CANNOT report it on the 2007 return.
You will be charged interest (about 8% currently compoundled daily) and penalties on the tax due, plus penalties for underreporting you income on the return.

Answer 5

Unfortunetly the IRS also gets a copy of the 1099. If you file without it and they don't catch it you will pay penalties. Usually they catch it and send you a corrected return then comes the penalties. It's best to be honest, maybe take it to a tax person to see if you've missed something. Good luck!

Answer 6

It probably won't delay your refund. Matching is usually done well after that. But you need to file an amended return as soon as you get the refund, and pay any extra tax you owe. Depending on how much they took out, you might not owe anything extra and might get an additional refund.

Answer 7

You can't add it to the current return. You have to file an amended return for the prior year and pay the penalty whatever it may be.

If they can prove you did it on purpose to save the tax you can be in a lot of trouble. I hope it was an oversite.

Be sure to either file quarterly estimates or change any other withholdings you have to cover this year's tax.

Answer 8

You do that you are going to have to pay it eventually? I had to file one this year also for the first time. Pay it and get it over with.

Answer 9

Capitol gains are taxable. Anything you do to dodge this tax is a crime that the IRS will pursue. I recommend talking to a tax accountant.

Answer 10

good question.. my wife filed without me knowing and left off the 1099.if they audit me it will show i lost 78 dollars..id say u need pro help. gd luk