1099-DIV

[Anonymous1010]

Jurisdiction

Iowa

I had a 1099-DIV come in on Feb 15, after I had filed my taxes (filed Feb 14). There was $28.80 in qualified dividends. I told my tax preparer and he said that isn't going to make much of a difference in my returns...so basically didn't tell me to do anything. My tax returns currently have $32 in qualified dividends, so technically should be $60.80. Should I do anything about this or is it worth it since it is a small amount?

Thank you

 

[adjusterjack]

Should I do anything about this or is it worth it since it is a small amount?

Your choice.

The IRS gets a copy of the 1099-DIV. Whether it generates a corrected return for a few pennies tax is beyond me.

If it was me, I'd let it go.

 

[Tax Counsel]

I had a 1099-DIV come in on Feb 15, after I had filed my taxes (filed Feb 14).

This is one reason I tell clients with any investment income to wait until March 1 to file their returns. The 1099 issuer doesn't face any significant penalty for issuing a 1099 late unless it fails to issue the 1099 by the end of February. It is therefore not at all uncommon for 1099 forms to keep coming throughout February, so unless you are absolutely certain you've received all the 1099s you're going to get, waiting a few extra weeks to file that return may save you the hassle of amending the return when the amount reported on the 1099 is significant enough that you really do need to amend rather than wait for the IRS to bill you.

Should I do anything about this or is it worth it since it is a small amount?

If you do nothing now the IRS is likely to send you a letter asking for the few bucks of additional tax, plus some interest, in about a year or so. You can either file the amended return now and pay the extra tax (and avoid the small amount of interest) or simply write a check when the IRS sends you that letter later. The latter is less hassle for you, but will cost you just a little bit more.

 

[flyingron]

Yep, just got one myself from a private equity thing I'm involved with.