Just discovered a forgotten 1099 from 2022 on my taxes. Should I wait for the IRS to notice and bill me or file amended?
I just found a 1099 from 2022 that completely slipped my mind when filing last year. It wasn't a huge amount - I probably underpaid taxes by around $270. I'm debating whether to go through the hassle of filing an amended return and sending a check, or just waiting for the IRS to eventually notice the missing 1099 income and send me a bill. If I just sit tight and wait for them to catch it, am I looking at penalties and interest that could've been avoided by being proactive? The penalty seems like it would be pretty minor given the amount, so I'm wondering if it's even worth the effort to fix this myself. What's weird is they haven't caught it already and sent me a bill. I did file using an extension last year and didn't submit until October, so maybe that's why? Anyone dealt with something similar or have advice on the best approach here?
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Natalia Stone
You should definitely file an amended return (Form 1040-X) rather than waiting for the IRS to catch it. While the financial impact might seem small, there are a few important reasons to be proactive: When you know there's an error and choose not to correct it, the IRS could potentially view this as intentional tax avoidance rather than an honest mistake. The penalties for the former are much steeper. Even though the amount is relatively small, penalties and interest accrue from the original due date of the return, not from when the IRS discovers the error. This means the longer you wait, the more you'll end up paying beyond that $270. Filing an amended return also starts the statute of limitations clock for that tax year, giving you more certainty about when your tax obligations for that year are truly settled.
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Tasia Synder
•But how much would the penalties and interest actually be on $270? Seems like it would be minimal and might not be worth the hassle of doing an amended return. I've heard those are a pain in the butt.
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Natalia Stone
•The penalty is typically 0.5% of the unpaid tax per month, up to 25% maximum. So on $270, that's about $1.35 per month. Interest is currently running around 7% annually, so that's another $1.58 per month approximately. While the dollar amount is small, remember that willfully ignoring a known error puts you in a different category if you're ever audited. The IRS is much more lenient with taxpayers who make honest efforts to correct their mistakes. The peace of mind is often worth more than the time it takes to file the 1040-X.
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Selena Bautista
After making almost the exact same mistake a couple years ago, I started using taxr.ai (https://taxr.ai) and it's been a game-changer for catching these kinds of issues. It scans all your tax documents and compares them to what you actually filed, so nothing falls through the cracks like your 1099 did. For your current situation though, I'd recommend amending. When I found my missed 1099-MISC (about $500 in income), I waited thinking they'd catch it. They did, but 14 months later, and by then the penalties had added up more than I expected. The notice they sent was also pretty intimidating, making it seem much worse than if I'd just fixed it myself.
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Mohamed Anderson
•How exactly does taxr.ai work? Does it somehow access your IRS account or do you have to upload all your tax documents manually? Sounds interesting but also wondering about security.
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Ellie Perry
•I'm skeptical that any service can actually pull everything from the IRS. Doesn't the IRS only know what's been reported to them? If an employer or client messes up and doesn't report properly, seems like this wouldn't catch it either.
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Selena Bautista
•You upload your tax documents and returns, and it uses AI to compare what you filed against what's in your documents. It's like having a second set of eyes checking your work. It's all encrypted and they have bank-level security measures. It can't access info the IRS doesn't have, but most 1099s, W-2s, etc. do get reported to the IRS, which is exactly why they eventually catch these discrepancies. The service helps you find mismatches before the IRS does, so you can fix them proactively.
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Mohamed Anderson
I was super skeptical about taxr.ai when I first heard about it, but after trying it out on my 2023 taxes, I'm a believer. I had accidentally transposed some numbers on one of my 1099-NEC forms, and the system flagged it right away. Saved me from making the exact mistake the original poster made! The document scanning is really accurate too. I had a stack of tax documents from different sources (some poorly scanned) and it caught details my previous accountant had missed. Definitely filing an amended return is a pain, but avoiding them in the future is even better.
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Landon Morgan
If you're worried about dealing with the IRS over this, Claimyr (https://claimyr.com) was a lifesaver for me in a similar situation. I needed to talk to someone at the IRS about a misreported 1099 from 2021, but kept getting the "call volume too high" message for weeks. Claimyr got me connected to an actual IRS agent in under 15 minutes when I'd been trying for days on my own. The agent was surprisingly helpful and walked me through exactly what I needed to do to fix a similar situation. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c I'd still recommend filing the amended return, but if you have questions about penalties or process, actually speaking to someone helps immensely.
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Teresa Boyd
•Wait, how is this even possible? The IRS phone lines are notoriously impossible to get through. Are you saying this service somehow jumps the queue? That sounds too good to be true.
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Lourdes Fox
•This sounds like a scam tbh. No way anyone can magically get through to the IRS when millions of people can't. Even if it works, they're probably charging an arm and a leg for something you could do yourself if you're just patient enough.
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Landon Morgan
•It uses an automated system that continually dials and navigates the IRS phone tree until it gets a spot in the queue. Once it reaches a real person, it calls you and connects you. It's completely legitimate - they don't "jump the queue," they just handle the frustrating part of constantly redialing and waiting on hold. They're essentially doing what you'd do if you had unlimited time and patience to keep calling back. I was skeptical too until I tried it. After spending hours trying to get through myself, getting connected in minutes was worth it.
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Lourdes Fox
I owe everyone here an apology. After calling BS on that Claimyr service, I decided to try it myself since I've been trying to reach the IRS about a payment issue for weeks. I hate to admit it, but it actually worked exactly as described. I got connected to an IRS representative in about 20 minutes (after trying unsuccessfully for three weeks on my own). The agent confirmed that filing an amended return ASAP is definitely the right move for situations like the OP's. They explained that waiting for them to catch it automatically triggers the CP2000 notice process, which is much more of a headache than just fixing it proactively.
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Bruno Simmons
The failure-to-pay penalty is 0.5% per month or partial month, up to 25% of the unpaid amount. Interest is currently around 7-8% annually, compounded daily. So yeah, on $270, we're talking very small amounts. But here's what most people miss: if the IRS sends a CP2000 notice (which they will when they match your return against the 1099), you'll need to deal with that anyway. And responding to that notice takes about the same effort as filing an amended return now, except you'll have the added stress of receiving an official IRS notice.
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Nolan Carter
•Thank you for breaking down the penalties! That's really helpful. Would you happen to know if the CP2000 notice typically comes with any additional penalties beyond the standard failure-to-pay ones? I'm trying to weigh all the factors.
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Bruno Simmons
•The CP2000 itself doesn't add extra penalties beyond the standard failure-to-pay penalty and interest. However, once you receive a CP2000, you're on the IRS's radar in a more official way. If they find other issues during this review process, it could potentially trigger a more comprehensive look at your return. Additionally, responding to a CP2000 means accepting their calculation of what you owe, which might not account for any offsetting deductions or credits you could have claimed with an amended return. With a 1040-X, you control the narrative and can present your complete tax situation.
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Aileen Rodriguez
Not to scare you, but I've been in almost this exact situation. Forgot a 1099 for about $1,200. I just waited for the IRS to catch it, thinking it would be easier. BIG mistake! First, they took over a year to send the notice. By then interest had accumulated. Second, they automatically assumed the WORST possible tax treatment for that income. Since I didn't tell them how to categorize it, they treated it as pure profit with no deductions or costs against it. Ended up paying way more than if I'd just amended my return.
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Zane Gray
•This is a really important point that people miss. When the IRS adjusts your return, they don't know all your circumstances and often assess the maximum possible tax. Did you try to contest their calculation after you got the notice?
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