If i forgot to include a 1000 dollar 1099 will the irs correct it for me and adjust my refund accordingly?

[Rachel_W · Accepted solution]

If you forgot to include a $1,000 Form 1099, you should Amend your Tax Return once it has been fully processed and you have received your refund.  You can click here for instructions on Amending your tax return: How to Change a Tax Return You Already Filed. 

The IRS will correct it eventually, but it usually takes them an average of 1-2 years to catch the error.  This means that they will add interest and/or penalties from that time period.  

It is definitely best to be proactive and Amend your return by April 15, 2019 to avoid any interest and penalties.

[Opus 17]

No.  Their computer system is not that fast.  It will probably take a year or so for them to catch up and send you an assessment, by which time the tax you owe will include late payment penalties and interest.

[re2boys]

And the IRS will take the worst possible interpretation of what the 1099 represents.  If it is for dividends or interest, there assessment to you would likely be correct.  If it is a 1099MISC, they likely will interpret it as self-employment income and charge you self-employment taxes.  If that is true, again, their assessment will be accurate (as long as you didn't have any self-employment expenses.  Better to be pro-active.