I just received a notice from our state's tax & rev that I didn't clam a small amount of interest income on my 2005 return. Do I need to file an ammended 2005 return, or can I include that on my 2006 return? How do I find out what pentalties may have been imposed on me from the IRS? The notice came in the form of a 1099-INT. ---Thank you for your help.
2007-02-19 05:12:23 · 3 answers · asked by ms_quiltsalot 2 in Business & Finance ➔ Taxes ➔ United States
I neglected to mention that this reads as a "Combined Tax Statement for Year 2006". However, the amount listed is for 2005.
2007-02-19 05:32:28 · update #1
This isn't as big a problem as it might seem. The proper way is to file a 1040X Amended Return for 2005, and include a Schedule B which is the form for dividends and interest paid to you. Amended returns have to be mailed rather than filed electronically. Enclose a copy of the 1099-INT if you still have it.
I wouldn't worry about the penalties. If the IRS thinks you owe one, they will let you know. If the interest amount left off is small, the penalty if there is one should be small too.
2007-02-19 05:29:25 · answer #1 · answered by Anonymous · 0⤊ 1⤋
If you agree with the notice, then just pay it. If filing an amended return will change the amount of the assessment, then you should file an amended return, otherwise just pay the assessment and don't bother with filing an amended return.
You cannot elect to report the income on 2006. Each year is taken separately. Would you like it if the tax authorities said "well....we'll wait until next year to give you credit for your withholding....in the meantime, we will assume you paid nothing in withholding and you will owe tax"?
2007-02-19 05:21:57 · answer #2 · answered by jseah114 6 · 0⤊ 0⤋
You have to amend your 2005 return.
2007-02-19 06:09:24 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 0⤋