Did not report 1099

[Brndnagee]

Hello,

I cashed out company stock options for $3,089 after taxes.  These options pay through a separate check from my employer.  I did not include the tax form from the stock provider in my return.  The IRS has sent me a bill for $671.  This is listed under securities. The IRS says I miss represent my income by the above amount.

My question is,  will amending my return by filling the return with the stock option tax doc erase or decrease this $671 bill?  I am not sure if I was given to much of a refund due to the reporting issue and the IRS is stating I owe it back or if the IRS dose not see that I have paid taxes on this income due to the reporting issue and once I report it properly the debt will be erased.     

In short, will filling the doc I missed make a difference?  

Thanks for the help.

[VictoriaD75 · Accepted solution]

It is likely that filing the missing document will reconcile the difference to what the IRS has calculated you owe. 

Keep in mind that when you are amending, the refund tracker monitors the difference from your original filing to the amended return. It does not include any original refund or balance due. If you are claiming any previously unclaimed income, you will likely see the difference as an additional amount due. 

If the IRS calculated properly based on the missing information, the result should be the same. It does not hurt to retrieve the document and enter it on an amendment to compare the results. If it matches, and the IRS does not request an amended return, you can just pay the amount due. If the results do not match, you may want to contact the IRS and file the amended return.

Should you have to amend, follow the steps below:

1. Log into your TurboTax account
2. Choose the tax year that you wish to amend
3. Click Amend
4. Make any necessary changes