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Level 2
posted Feb 22, 2022 5:40:08 AM

Am I Required to Amend my Federal Return (once you can in March)?

I e-filed my Federal return a few weeks ago, with a refund due to me. Today I received a 1099 that I did not report in my taxes. However, the only tax amount is a .32 cent loss. For this amount, which I think would round down to nothing, must I amend my Federal return (once the 1040X is available for 2021 tax year in March)? The 1099 itself of course says that information on it is being reported to the IRS. Thanks

0 3 518
3 Replies
Level 15
Feb 22, 2022 8:37:55 AM

Depends on what the 1099 is reporting. If it is a 1099-B, which I suspect it is since you described a loss, you would report it because the IRS would only see your proceeds. 

Level 2
Feb 22, 2022 8:45:18 AM

To clarify, the 1099 is a 1099-B, but it states on it that the cost basis will be reported to the IRS. I understand that years ago, only the proceeds were reported, but I had thought that had changed to include the cost basis (and the 1099-B states the cost basis will be reported). 

Level 15
Feb 22, 2022 8:55:56 AM

The IRS doesn’t always receive the cost basis—non covered stock for example.  But gross proceeds are always reported so it makes sense that that is what the IRS computers look at. There is no downside to you reporting that sale.