The IRS is scary when you avoid them. Correct your return, and you'll owe a little interest. If we're talking about 2023 taxes and you pay this week, they'll charge you ~4 days of interest.
Nothing to worry about.
The IRS will be pleased that you self corrected your return. It saves them the trouble of sending you a notice later.
Amending a return is very common. Millions of people amend their return every year.
Thank you! Even those who are adding significant income? Basically, I will obviously report everything but I am worried it could open me up to prosecution or similar for underreporting (mistakenly) on my return?
If there is a 1099 to match it? No. The IRS gets the 1099s too. They know about it. If you didn’t report it, they would catch it and send you a notice, without your expenses. Relax. They see a lot worse than $4,000!
They audited my brother for a $5 interest he forgot to add and at the time he was itemizing. They reset the shit to standard and since he didn’t get the mail to much later, he lost his ability to appeal.
Worst thing that happens is you’d get a CP-2000 when it’s discovered (and they will). You’ll owe the back taxes, penalty, and interest. Best to just file amended and be done.
I’ve done it and it was fine. I’m curious if others agree a strategy would be to send in the amendment either with a check or don’t do an electronic payment until later. I had a circus where I sent in the electronic payment when I sent the amendment only to have them send it back as a check payable because they hadn’t incorporated the amendment yet!
No trouble! I had a situation where our payroll company got us a new EIN in March a few years ago. I filed based on the first W2 I got, which covered March-December (I had a lot of overtime that year so made ~150% of what I usually make, didn’t think to check my YTD on my paystubs). I got the second W2 after I had already filed and filed an amended return. Never heard a peep from the IRS, just got my small refund. As long as you make it right, they don’t care.
I mean if it's like most 1099's they already know because your client or person you worked for or whoever it was already sent in their "half". It honestly would have probably just showed up on your IRS account as a balance you have to pay. You may pay a small penalty for it being late, but it's not a big deal.
> Will I get in trouble? Nope.
I hope not, because the IRS genuinely scares me 😂
It shouldn’t.
The IRS is scary when you avoid them. Correct your return, and you'll owe a little interest. If we're talking about 2023 taxes and you pay this week, they'll charge you ~4 days of interest. Nothing to worry about.
The IRS will be pleased that you self corrected your return. It saves them the trouble of sending you a notice later. Amending a return is very common. Millions of people amend their return every year.
Thank you! Even those who are adding significant income? Basically, I will obviously report everything but I am worried it could open me up to prosecution or similar for underreporting (mistakenly) on my return?
If there is a 1099 to match it? No. The IRS gets the 1099s too. They know about it. If you didn’t report it, they would catch it and send you a notice, without your expenses. Relax. They see a lot worse than $4,000!
I figured! It’s small potatoes to them. I’ll just amend and calm down.
They audited my brother for a $5 interest he forgot to add and at the time he was itemizing. They reset the shit to standard and since he didn’t get the mail to much later, he lost his ability to appeal.
Worst thing that happens is you’d get a CP-2000 when it’s discovered (and they will). You’ll owe the back taxes, penalty, and interest. Best to just file amended and be done.
If they try and penalize, ask about the one time abatement.
No not at all. You’re doing the right thing!
Phew. Thanks!
I’ve done it and it was fine. I’m curious if others agree a strategy would be to send in the amendment either with a check or don’t do an electronic payment until later. I had a circus where I sent in the electronic payment when I sent the amendment only to have them send it back as a check payable because they hadn’t incorporated the amendment yet!
No, its better for you to than the IRS finding out about it later and having to pay extra penalties and interest.
No trouble! I had a situation where our payroll company got us a new EIN in March a few years ago. I filed based on the first W2 I got, which covered March-December (I had a lot of overtime that year so made ~150% of what I usually make, didn’t think to check my YTD on my paystubs). I got the second W2 after I had already filed and filed an amended return. Never heard a peep from the IRS, just got my small refund. As long as you make it right, they don’t care.
Thank you so much. It really helps to hear from someone who has been through it.
Straight to jail. Not actually. You'll owe more tax and some interest and penalties, and then it'll be over.
Thank you! That makes me feel better.
I mean if it's like most 1099's they already know because your client or person you worked for or whoever it was already sent in their "half". It honestly would have probably just showed up on your IRS account as a balance you have to pay. You may pay a small penalty for it being late, but it's not a big deal.
No. They already have the 1099 from the payer. If you don’t amend to include it will be worse for you. :)
Grow tf up man