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Level 3
posted Apr 15, 2025 9:12:51 AM

Originally received an incorrect 1099-S showing a Gross Proceeds for $55K. Just got a Corrected 1099-S with Gross Proceeds for $0, What to do next?

Hello,

 

The Title company that originally sent an incorrect 1099-S for $55,000 for a fraudulent sale of a vacant lot I own finally submitted a Corrected 1099-S showing $0 for Gross proceeds (Box 2) to the IRS.

 

Just checked my 2023 IRS Wage and Income Data sheet and it shows both the original 1099-S with $55,000 for Gross Proceeds and the Corrected 1099-S with $0 for Gross proceeds.

 

I think I'm good to go!

 

I can finally complete my 2023 Tax forms...

 

Though I'm not quite sure if I should include both 1099-S forms in my 1040 form or just the Corrected 1099-S since the second 1099-S (corrected one) is practically overriding the original 1099-S for $55,000, right?

 

I could use some help.

 

Thanks

0 5 1916
1 Best answer
Expert Alumni
Apr 15, 2025 2:16:28 PM

If the corrected 1099-S had any taxable income, it would need to be filed. With zero income showing, there is no taxable income possible; therefore, no need to file.

5 Replies
Expert Alumni
Apr 15, 2025 9:14:45 AM

No, you do not have to report the 1099-S.  The IRS has the corrected one so they will not expect to see the income for you tax return.  

Level 3
Apr 15, 2025 9:22:23 AM

Thank you for your prompt response MaryK4.

 

But I'm still a bit confused with your reply.

 

So my question still stands, do I need to report the original 1099-S for $55K AND the Corrected 1099-S for $0 on my 1040 Form OR do I have to report JUST the CORRECTED 1099-S for $0?

Expert Alumni
Apr 15, 2025 9:47:05 AM

No, you do not need to report it at all. Sorry for the confusion!  @Priller 

Level 3
Apr 15, 2025 11:12:18 AM

Hi Mary4K,

 

Thanks for the prompt response.

 

It seems you are indicating that I do not have to report the ORIGINAL 1099-S showing $55,000. I get that.

 

How about having to report the SECOND / CORRECTED 1099-S showing $0, Do I have to report this CORRECTED 1099-S on my 1040 Form?

 

Please see the note from the IRS 1099-S Form below:

 

"Copy B For Transferor

This is important tax information and is being furnished to the Internal Revenue Service. If you are required to file a return, a negligence penalty or other sanction may be imposed on you if this item is required to be reported and the IRS determines that it has not been reported."

 

 
 

 

 

Expert Alumni
Apr 15, 2025 2:16:28 PM

If the corrected 1099-S had any taxable income, it would need to be filed. With zero income showing, there is no taxable income possible; therefore, no need to file.