Recieved corrected 1099 Div. Need I re-file immediately, or wait till next year?

Question

I received a correction to the form 1099 DIV from my brokerage company after I had already filed my return along with a form W7 to request a TIN for my wife. Am I required to file a corrected return right away or can I do it in the next tax year?
Also, would I have to resend the form W7?

Answer 1

If the corrected amount is higher you need to file an amended return on Form 1040X by April 17, 2007 and pay any additional tax due to avoid any penalties and interest. If the amount is lower you have until April 15, 2010 to file the amended return and get a refund of overpaid taxes resulting from the corrected amount.

You do NOT need to file a second W-7. You should wait for your wife's ITIN before you file the amended return as you'll need it on the amended return.

Answer 2

I would let your Tax preparer look at the corrected form immediately. Some corrected forms do not require an amended return.

You will not have to resend the W7 paperwork but since the is involved I would not delay in forwarding the new 1099 to your preparer.

Answer 3

You might as well get it over with and amend your 2006 return. If you don't amend it (Form 1040X) the IRS will contact you. This HAS to go on the 2006 return since it's 2006 income.

I don't know about the W7 but when you file the 1040X be sure you include a copy of the original return with the amended return. Anybody that says you don't need to include a copy of the original return is WRONG.

Answer 4

You can't just include the difference in your 2007 return, you'll have to amend your 2006 return.

You shouldn't have to resend the W-7.

Answer 5

If the change in income is so large that it generates additional tax owed, then you do not want to delay in sending in an amended return.

If the change is insignificant, the amendment is not that urgent. If the change results in an additional refund to you, you must request the refund in an amended return by April 15, 2010.