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?

[Priller]

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

[MaryK4]

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.  

[Priller]

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?

[MaryK4]

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

[Priller]

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."

[AmyC · Accepted solution]

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.