How do I add a 1099 after filing?

June 12, 2020 by David E. Du Val, EA
Form 1099-Misc

For 2018 taxes I did not add my 1099. The IRS is saying I owe. How can I remedy this? I have the 1099 ready to add.

Diana

Diana,

You are smart to question any and all notices from the IRS. Receiving a notice for unreported Form 1099 or W-2 income is a very common situation. It is often the case that taxpayers overlook or have never received the forms – but as we all know, we are still responsible for the taxes due on the income. 

If you discover the omission before the IRS does, then you should generally file an amended return on Form 1040X. If the IRS sees it first and sends a notice (often called a CP2000), then you should determine if the tax amount assessed on the notice is correct. Sadly, even if the IRS is right on the additional tax, they will charge you interest from the date the tax was due. They will often add a Failure-to-Pay penalty as well. However, there is an “automatic” abatement of this penalty – and by automatically, we do not mean the IRS will tell you about it. We mean, you will have to request to have the penalty abated in writing – and under specific guidelines, the IRS is required to abate the penalty. As you live in Texas, you will not have a state tax return to amend.

Deductibly Yours,
Dave

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David E. Du Val, EA
Chief Compliance Officer for TRI Holdco

 

Dave Du Val, EA, is Chief Compliance Officer for TRI Holdco. Inc., the parent company of TaxAudit, and Centenal Tax Group. A nationally recognized speaker and educator, Dave is well known for his high energy and dynamic presentation style. He is a frequent and popular guest speaker for the California Society of Tax Consultants, the California Society of Enrolled Agents and the National Association of Tax Professionals. Dave frequently contributes tax tips and information to news publications, including US News and World Report, USA Today, and CPA Practice Advisor. Dave is an Enrolled Agent who has prepared thousands of returns during his career and has trained and mentored hundreds of tax professionals. He is a member of the National Association of Tax Professionals, the National Association of Enrolled Agents and the California Society of Enrolled Agents. Dave also holds a Master of Arts in Education and has been educating people since 1972. 


 

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