Tax Preparer Missed My 1099 and 1098 Forms - Need to Amend?

Yes, you need to amend. Missing a 1099 from Fidelity (investment income) and a 1098 (mortgage interest) is serious. The IRS will get these forms directly from the issuers and flag the discrepancy. Don't wait - file a 1040-X as soon as possible. The longer you wait, the more penalties and interest can accumulate, especially if the Fidelity form shows income that increases your tax liability.

Actually, before rushing to amend, you should check if these forms would materially change your tax situation. For example, if the 1098 shows mortgage interest that would increase your itemized deductions beyond the standard deduction you already took, then yes, amend. But if you'd still be better off with the standard deduction, it might not matter. Similarly, if the Fidelity 1099 shows minimal dividends or capital gains (say under $100), the tax impact might be negligible. 😂 The IRS has bigger fish to fry sometimes!

I was in the exact same boat last year with a missed 1099-DIV and a 1098-E. After calculating that I'd owe an additional $437 in taxes, I needed to talk to an IRS agent to understand my options. Tried calling for exactly 3 days straight - 17 calls total, never got through. Finally used Claimyr (https://youtu.be/_kiP6q8DX5c) and got connected to an agent in 28 minutes. The agent walked me through exactly how to file the 1040-X and even told me which forms I needed to attach. Saved me so much stress during an already stressful situation!

Been there, done that! My tax guy missed a 1099-B last yr and I had to amend. Cost me an extra $175 for the amendment prep (diff preparer) + I had to pay some interest bc it increased what I owed. IMO if ur forms will change ur tax situation, def amend ASAP. The IRS computers WILL catch the mismatch eventually and then u might face bigger penalties. Better to fix it on ur terms than wait for them to find it!

Instead of immediately amending, I suggest this approach: • Run your own tax calculation with the missing forms included • Determine the actual tax impact (increase or decrease) • If it increases your tax liability, file an amendment right away • If it decreases your liability or has zero impact, you can still amend to correct the record • Consider using tax software to run this calculation yourself This way you make an informed decision rather than paying for an amendment that might not be necessary.

I'm wondering... if the tax preparer made the mistake, shouldn't they be responsible for filing the amendment at no additional cost? Is that something that's typically covered in their service agreement?

The key factor here is timing. Since we're still before the April 15th filing deadline, you actually have two options: (1) file an amended return using Form 1040-X, or (2) file a superseding return. A superseding return completely replaces your original return if filed before the deadline, and it's treated as if it were your original return. Think of it like hitting the reset button - it's often cleaner than an amendment, which is more like patching holes in a leaky boat.

OMG I had the EXACT same thing happen last year!!! 😱 My preparer forgot a 1099-INT and I was freaking out! I ended up using TurboTax to file an amended return myself (saved $$$) and it was actually pretty straightforward! The best part was that I discovered I was actually owed a BIGGER refund because the interest was offset by some deductions I qualified for! So don't panic - this might even work out in your favor! 🙌

I've been through this rodeo before. In my experience, the 1098 mortgage interest form is the more important one to correct if it gives you a substantial deduction you didn't claim. The Fidelity 1099 depends on what type it is - if it's a 1099-B showing stock sales, the IRS will definitely notice if those aren't reported. If it's just a small dividend 1099-DIV with minimal amounts, the tax impact might be negligible. Either way, I've found it's better to fix errors before the IRS finds them.