topic Re: Am I required to amend if the net is money owed to me? in After you file

Am I required to amend if the net is money owed to me?

rwom1217 — Sat, 13 Jul 2024 22:10:52 GMT

I was going through an amendment of my '22 return to pay taxes owed on some investment sales I had not included. While going through everything, I also discovered some missing deductions. After entering everything, TT is showing that I am actually owed $24. Am I still required to amend the return if the net is money coming back to me?

Re: Am I required to amend if the net is money owed to me?

Mike9241 — Sat, 13 Jul 2024 22:39:19 GMT

in the absolute sense No you are not required to file if you are due a refund. This also assumes the amendment would have no effect on other years. The issue is that the IRS may have received tax forms reporting those missing investment sales but will not know about those deductions. In that case the IRS is likely to send you a bill and then you'll have to submit an amended return. At that point Turbotax for that year may not be supported, so you would have to do the amended return manually. so maybe as a minimum you prepare the amended returns but wait to see if you get a notice. Also, do you have a state return that would also be affected by the missing info?

Re: Am I required to amend if the net is money owed to me?

DoninGA — Sat, 13 Jul 2024 22:40:27 GMT

It would be wise to complete and file the amended tax return. There is a good possibility that the IRS has received information on the investment sales from the brokerage firm, so would expect to see those sales included on your tax return.

Re: Am I required to amend if the net is money owed to me?

rwom1217 — Sat, 13 Jul 2024 23:05:52 GMT

What you are all saying makes sense. It was actually personally owed physical property/collectibles that I sold privately so the IRS wouldn't know about them. If I owed, I'd obviously do it, but I also happened to have some deductions I missed so in the end it worked out in my favor.

Re: Am I required to amend if the net is money owed to me?

pk — Sun, 14 Jul 2024 18:58:11 GMT

@rwom1217 , agreeing with my colleagues @Mike9241 and @DoninGA , I would urge you to recognize the "private" sales proceeds i.e. amend the return. I say this because when you file a return ( electronically or by mail ) you are submitting this as a true account of your incomes ( & allowable deductions ), under penalty of perjury. IRS may or may not catch the un-recognized income, but if they do , you will on their watch list for the next three years. Therefore and because of perjury jurat, I will take the trouble of setting records straight. That is my suggestion -- of course what you do is up to you.