Completely forgot to report some dividends on my tax return - will there be a problem?

Don't panic, this is a pretty common situation. Yes, technically all income needs to be reported regardless of the amount, but the practical reality is that $52.28 in dividends would result in a very small tax difference - probably around $10-15 depending on your tax bracket. The IRS might send you a CP2000 notice eventually (it's an automated system that matches reported forms to your return), but they might not because some very small amounts are below their threshold for follow-up. If you want to be 100% compliant, you can file Form 1040-X to amend your return. The good news is that with such a small amount, any potential penalty would be minimal or potentially zero. Many people choose to just wait and see if they receive a notice and pay then, while others prefer to correct the record proactively. Either way, this definitely isn't audit territory for such a small oversight!

After dealing with a similar situation last year (forgot about $100 in dividend income), I found this amazing tool called taxr.ai (https://taxr.ai) that helped me figure out exactly what to do. I was stressing about whether to amend or wait, and their document analysis actually showed me that the tax impact was minimal and gave me options. You upload your tax documents and 1099s, and it analyzes everything to tell you the real tax impact and what your best course of action is. It even explained how the matching system works and what would trigger notices. Super helpful for understanding those "should I amend or not" situations.

Just wanted to update - I tried taxr.ai after my skeptical comment and I'm actually impressed. I had a similar issue with unreported income (a small 1099-MISC I forgot about) and it took less than 5 minutes to find out that the tax difference was only $13. The system even showed me exactly what would happen if the IRS caught it vs. if I amended. Decided not to bother with an amendment since the impact was so small, and now I'm not stressing about it. Definitely saved me from an unnecessary amendment!

If you do end up needing to talk to the IRS about this or any other issue, save yourself hours of waiting on hold by using Claimyr (https://claimyr.com). I was in a similar situation with missing dividend income and wanted to ask someone directly at the IRS. Tried calling for DAYS and couldn't get through, then a coworker told me about this service. They basically hold your place in line with the IRS and call you back when an agent is about to answer. You can see it in action here: https://youtu.be/_kiP6q8DX5c. Used it and got a call back in about 45 minutes instead of waiting on hold for 3+ hours. The IRS agent actually told me not to bother amending for my small amount (was around $70).

I'll eat my words - I tried Claimyr after calling the IRS myself three times and getting disconnected each time. Not only did it work exactly as described, but I got through to a real person who answered my question about a missing 1099. Instead of wasting my entire afternoon on hold, I just got a call when an agent was ready. The agent explained that for small dividend amounts under $100, they rarely pursue discrepancies because the processing cost exceeds the revenue. Definitely recommend if you need to actually talk to someone at the IRS.

Anyone know how much it would cost to have a tax professional file an amended return for something this small? I'm in a similar situation ($63 in missed interest income) and wondering if it's worth paying someone.

Fun fact: the IRS computer matching system (called AUR - Automated Underreporter) actually has thresholds for when they bother to send notices, and they change each year based on their backlog and staffing. They don't publish the exact numbers, but most tax pros know that very small amounts often fly under the radar. That said, it's still technically your legal obligation to report everything accurately.

I literally had this exact issue last year! Missed dividend income of about $45. I just waited and the IRS never sent me anything. My tax guy said they have bigger fish to fry and that computer matching for tiny amounts often gets filtered out due to cost-benefit analysis. Remember the IRS is understaffed and focused on larger issues.

I'm in almost the exact same boat - missed about $47 in dividend income from my Schwab account because they were automatically reinvested and I completely forgot about them when filing. Reading through everyone's responses here has been really helpful, especially learning about those AUR thresholds that aren't publicly known. I think I'm going to take the "wait and see" approach since the potential tax impact is so minimal (probably under $12 based on my bracket). If the IRS sends a notice, I'll just pay whatever they calculate plus any small penalty. Seems like the cost and hassle of amending proactively isn't worth it for such a tiny amount. Thanks to everyone who shared their experiences - it's reassuring to know this is more common than I thought and that the IRS generally has bigger priorities than chasing down $50 in dividends!

I'm dealing with a very similar situation - missed reporting about $38 in dividend income from my Vanguard account. Like you, I had automatic reinvestment set up and completely spaced on it during tax prep. After reading through all these responses, I feel much better about the situation. The consensus seems to be that for amounts under $100, the IRS often doesn't pursue these discrepancies due to the low tax impact and their resource constraints. The fact that you'd probably owe less than $15 in additional tax makes an amendment seem like overkill. I'm also going with the "wait and see" approach. If they send a CP2000 notice, I'll just pay what they calculate. But honestly, given their current backlog and the tiny amount involved, there's a good chance they won't even flag it. One thing I'm definitely doing differently next year is creating a tax document checklist that includes all my investment accounts, even the ones with small amounts. It's so easy to forget about these when you're focused on W-2s and the bigger 1099s!

This thread has been incredibly helpful! I'm a tax newbie who just started investing last year and found myself in the exact same situation - missed about $67 in dividend income from my Fidelity account because I had no idea those reinvested dividends were taxable events. Reading everyone's experiences here has really put my mind at ease. I was initially panicking and considering paying a tax preparer to file an amendment, but after seeing that it would cost way more than the actual tax owed, I'm definitely going with the "wait and see" approach. The information about the AUR system and those unofficial thresholds is fascinating - it makes total sense that the IRS would have cost-benefit filters in place given their resource constraints. For someone like me with such a small amount, it sounds like there's a decent chance it won't even trigger their automated matching system. I'm also taking notes on everyone's suggestions for next year - definitely creating that investment account checklist and setting reminders to review all accounts before tax season. This is exactly the kind of rookie mistake I needed to learn from! Thanks to everyone who shared their real-world experiences. It's so much more valuable than the generic advice you find on tax websites.

This is such a reassuring thread! I'm in a nearly identical situation - missed reporting $41 in dividend income from my E*TRADE account. Like so many others here, I had automatic dividend reinvestment enabled and completely forgot these were taxable events when filing my return. What really struck me reading through everyone's experiences is how common this oversight is, especially for newer investors. The automatic reinvestment feature is great for building wealth long-term, but it definitely creates a "out of sight, out of mind" situation during tax season when you're not seeing actual cash deposits. Based on all the practical advice shared here, I'm also going with the wait-and-see approach. The potential tax liability is probably around $8-10 in my bracket, and even with penalties it would be far less than paying for a professional amendment. The insights about the AUR system thresholds and current IRS staffing constraints make this feel like a reasonable calculated risk. I'm definitely implementing the investment account checklist idea for next year, and maybe even setting up a simple spreadsheet to track dividends throughout the year so I don't have to rely on memory during tax prep. Thanks to everyone for sharing their real experiences - it's so much more helpful than generic tax advice!

I went through this exact situation two years ago with about $73 in missed dividend income from my TD Ameritrade account. Like everyone else here, I had automatic reinvestment set up and completely forgot about the dividends when filing. I ended up calling the IRS directly (before I knew about services like Claimyr!) and spent literally 4 hours on hold. The agent I finally spoke with was actually really helpful and explained that for small amounts like mine, they often don't pursue discrepancies because the administrative cost exceeds the revenue. She said if I wanted to be "technically correct" I could amend, but from a practical standpoint, they probably wouldn't flag such a small amount. I decided to wait and see, and sure enough, never heard anything from them. Two years later, no issues whatsoever. The agent also mentioned that their matching system has gotten more sophisticated but also more selective about what they pursue, especially during high-volume periods. For your $52, I'd say you're in the same boat as most of us here - the practical risk is extremely low, and the cost of amending would far exceed any potential penalty. The peace of mind from reading everyone's similar experiences here is probably worth more than the $10-15 in potential tax you might owe!

I'm dealing with almost the identical situation - missed reporting $44 in dividend income from my Schwab account due to automatic reinvestment. As a relatively new investor, I had no idea that reinvested dividends were still taxable events until I received the 1099-DIV after already filing. Reading through all these experiences has been incredibly helpful and reassuring. It's clear this is a very common oversight for new dividend investors, and the practical consensus seems to be that for amounts under $100, the risk of IRS follow-up is quite low given their resource constraints and cost-benefit analysis. I'm going to follow the "wait and see" approach that most people here have recommended. The potential tax impact is probably around $9-12 in my bracket, and even with penalties would be far less than paying a professional to file an amendment. The insights about the AUR system thresholds and current IRS backlog make this feel like a reasonable decision. Definitely taking notes on the investment account checklist and quarterly dividend tracking suggestions for next year. This thread has been more valuable than any generic tax advice I've found online - thanks to everyone for sharing their real-world experiences and outcomes!

I'm in a very similar boat - just discovered I missed reporting $58 in dividend income from my Vanguard account after already filing. Like so many others here, I had automatic dividend reinvestment set up and completely forgot these were taxable events since I never saw the cash. This thread has been incredibly reassuring! Reading everyone's experiences really highlights how common this oversight is for newer dividend investors. The consistent theme seems to be that for amounts under $100, the practical risk of IRS follow-up is quite low due to their resource constraints and the minimal tax impact. Based on all the shared experiences here, I'm also going with the "wait and see" approach. The potential additional tax would probably be around $12-15 in my bracket, and even with any penalties would be far less than paying to amend proactively. The insights about the AUR system thresholds and current IRS staffing issues make this feel like a reasonable calculated risk. I'm definitely taking notes on setting up an investment account checklist and maybe quarterly dividend tracking for next year. This is exactly the kind of real-world advice you can't find in generic tax guides. Thanks to everyone for sharing their experiences - it's so much more valuable than panicking alone!

I'm going through this exact same situation right now - missed reporting $49 in dividend income from my Fidelity account because of automatic reinvestment. As someone relatively new to dividend investing, I had no clue that reinvested dividends were still taxable events until I got the 1099-DIV after filing. This entire thread has been such a lifesaver! Reading everyone's real experiences is so much more helpful than the generic "you must report all income" advice you find everywhere. The consistent message seems to be that for small amounts like ours, the IRS typically has bigger fish to fry, especially with their current staffing and backlog issues. I'm definitely going with the wait-and-see approach based on all the shared wisdom here. The potential tax impact would probably be around $10-12 for my situation, which is way less than what I'd pay to amend proactively. Plus, hearing from folks like Tate who actually spoke to an IRS agent about this exact scenario and never had any follow-up issues really puts things in perspective. Already planning to set up a dividend tracking system for next year - this is clearly one of those "learning experiences" that most new dividend investors go through. Thanks to everyone for sharing their stories and making this feel way less scary than it initially seemed!