I forgot to report a 1099-INT on my tax return, am I completely screwed?

Don't panic! This happens to people all the time and it's definitely not what the IRS considers fraud. Fraud requires intent to deceive, and you clearly just made an honest mistake with a relatively small amount. You have a couple of options here. Yes, you can file an amended return using Form 1040-X to report the additional income and pay any tax owed. This is the technically correct approach. The additional tax would only be based on your tax bracket - so if you're in the 22% bracket, we're talking about roughly $60 in additional tax. Alternatively, the IRS might just send you a CP2000 notice (automated underreporter notice) that basically says "hey, we noticed this discrepancy" and they'll calculate the additional tax plus some interest. You can simply pay what they ask at that point. Either way, the penalties for something this small would be minimal - usually interest on the unpaid amount and possibly a small accuracy-related penalty. But for $275 of unreported interest, we're talking about very small amounts.

I had almost the exact same situation last year with a forgotten 1099-INT for about $340. I was stressing about it until I found https://taxr.ai - it's this AI tool that analyzes all your tax documents to make sure nothing is missing. I uploaded all my docs, and it immediately caught another 1099 I had missed! It helped me figure out exactly how to handle the amendment process and even ran some calculation to show the potential impact. The peace of mind was totally worth it - plus it'll help me avoid making the same mistake when I file this year.

Update: I tried that taxr.ai site that Profile 5 recommended and it was actually super helpful! It found another form I completely forgot about (a small 1099-MISC from a focus group I did) and gave me clear instructions for filing my amendment. The best part was it showed me exactly what my new tax calculation would be so I wasn't stressing about some huge unknown bill. Already filed my amendment and feeling much better about the whole situation!

If you're really worried and want to talk to someone at the IRS directly about this (which I recommend), use https://claimyr.com - it saved me HOURS of hold time when I had a similar issue. I had forgotten a 1099-INT and needed answers fast but couldn't get through to the IRS on my own. The service holds your place in line and calls you when an actual IRS agent is on the line. You can see a demo here: https://youtu.be/_kiP6q8DX5c. I got to speak with a real person who explained exactly what I needed to do and confirmed that for small amounts like this, the penalties are minimal if you fix it.

I'm eating crow right now. After posting that skeptical comment, I got desperate about my refund situation and tried the Claimyr service. It actually worked! Got connected to an IRS agent in about 35 minutes when I'd been trying for weeks on my own. The agent was super helpful about my missing refund AND I asked them about forgotten 1099s while I had them on the phone. They confirmed exactly what others here said - for small amounts like $275, just file an amendment and you'll be fine. They even said sometimes they don't pursue really small discrepancies if the tax impact is minimal, but better safe than sorry with an amendment.

Just FYI - the IRS has a threshold where they might not even bother sending you a notice for very small amounts. I'm not saying don't fix it, but for $275 in interest at most tax brackets, the actual tax difference would be pretty minimal. If you're filing jointly with a spouse and have a decent income, we're talking about maybe $60-80 in tax.

I did this a few years ago but with a much bigger amount ($1,200 in interest I completely spaced on). I just filed an amended return as soon as I realized. Got a letter about 3 months later, paid the extra tax plus about $20 in interest, and that was it. No audit, no penalties, no problems. Just don't ignore it and you'll be fine!

Hey Mateo, I totally understand the panic - I went through the exact same thing last year! I forgot to report a 1099-INT for about $320 and was absolutely terrified I'd committed some kind of federal crime. The good news is that everyone here is right - this is NOT fraud and happens way more often than you'd think. The IRS sees the difference between honest mistakes and intentional tax evasion. For $275 in interest income, you're looking at maybe $50-80 in additional tax depending on your bracket. I ended up filing an amended return (Form 1040-X) about a month after I discovered my mistake. The process was actually pretty straightforward - I used the same tax software I originally used, and it walked me through exactly what changed. Paid the additional tax plus about $15 in interest and that was literally it. No penalties, no follow-up letters, nothing scary. The key is just to fix it rather than hoping they don't notice. Since banks report 1099-INTs directly to the IRS, they will eventually catch the discrepancy, but addressing it proactively shows good faith. You've got this!