Sole proprietor with an already processed return looking for advice on whether or not I need to submit an amendment for an inaccurate SEP-IRA contribution reported. From my initial research it generally seems that you do need to submit a 1040-X as its considered a deduction, however in my specific case the difference between what was reported by my financial institution and what I reported seems insignificant (reporting difference of $50 or less). The change also does not affect my tax liability. Would I still need to amend this change and would the IRS also consider this difference insignificant as well?
If your tax liability is unchanged you don’t have to amend.
It is important that the amounts you report on your tax returns match what has been reported to the IRS on your behalf.
If the amounts differ, the IRS may correct the errors without you having to amend the return. They may send you a letter to advise you of the correction(s) they made. They will let you know if the correction resulted in an additional amount due.
If you agree with the corrections the IRS made, there is nothing more you need to do. If you do not agree, then you may want to file an amended return.