I assume I need to file some sort of correction for my 2005 taxes to account for this additional interest income from a savings bond. Thanks in advance for any answers.
2007-06-06 04:49:15 · 7 answers · asked by last_goodby 1 in Business & Finance ➔ Taxes ➔ United States
Some more details...the bank incorrectly reported the interest income to my father. The IRS was going to hit them with a big fine for not reporting this income until the bank corrected their mistake. Now I obviously want to avoid the IRS ire if possible. The amount is around $280.
2007-06-06 05:29:19 · update #1
Since this money has already caught the attention of the IRS through an audit, you should report this income by filing an amended 2005 tax return.
Download the 2005 Form 1040X from irs.gov. Using your original 2005 tax return, fill the columns in, adding $280 to the line for interest income. You will need to mail in this return with payment for any additional tax owed, attaching a Schedule B if Schedule B is required by the return.
The additional tax will be minimal and you won't be worried that the IRS will be coming after you for $50.
2007-06-06 05:44:42 · answer #1 · answered by ninasgramma 7 · 0⤊ 0⤋
I am not sure what the answer to this is but you better get it figured out because you never know someone may have stolen your ID and cashed out those bonds in your name. If 1099s are involved, you will have to pay the tax - no getting around that. Somehow you have to get the bank to rescind the 1099s with some sort of proof of what you say.
2016-05-18 00:33:33 · answer #2 · answered by alida 3 · 0⤊ 0⤋
I'm an accountant...Depends on how much the 1099 is for....Technically you should file an ammended return for 2005, for both federal and state But if it's for $100 or less, I would do nothing and let the IRS find it. If they do, they'll send you a bill, which you can just pay.
2007-06-06 04:54:28 · answer #3 · answered by jim 6 · 2⤊ 3⤋
Jim has the best advice.
I'd also call the bank and ask them how the heck this happened. Banks are usually better than that.
2007-06-06 05:12:51 · answer #4 · answered by Judy 7 · 1⤊ 0⤋
Just bend over and kiss your butt goodbye.
Just kidding!
You can wait until next year and find it for the previous year or you can file an ammended return which only complicates things and really doesn't matter because the IRS won't read it anyways. They'll just put it in a pile and it will delay things. They might even ask for money back from you so best thing is to wait for the next year.
2007-06-06 05:07:09 · answer #5 · answered by Rothwyn 4 · 0⤊ 6⤋
If you want to amend your return, you'll need to file form 1040X.
2007-06-06 04:55:37 · answer #6 · answered by Bogart 3 · 0⤊ 0⤋
throw it away and pretend you never got it.
2007-06-06 04:59:30 · answer #7 · answered by Angela C 6 · 0⤊ 5⤋