Tax help needed: How to handle amended return with late 1099-B form?

I just discovered I had a 1099-B form from 2021 that I completely missed when filing my taxes - it arrived super late in the mail and I had no idea it even existed! I tried going through TurboTax to file an amended return but it got rejected right away. According to the calculations, I now owe about $698 to federal and $318 to state because of capital gains reported on this 1099-B. I'm freaking out a little because this is money I wasn't expecting to owe. Has anyone dealt with something similar? What's the best way to handle this situation at this point? Should I try using a different tax software, go through a professional, or contact the IRS directly? Any advice would be really appreciated!

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18 comments

Nathaniel Stewart

•8M

The IRS is pretty understanding about these situations as long as you take action to fix it. Since your amended return through TurboTax was rejected, you have a few options: First, find out why the amendment was rejected - there should be a specific error code or reason. Sometimes it's just a simple error that can be corrected and resubmitted. TurboTax should provide details about the rejection reason. If that doesn't work, you can file Form 1040-X (amended return) by paper. Download the form from the IRS website, complete it, and include any supporting documents including the 1099-B. Mail it to the address specified in the instructions. For the state amendment, you'll need to check your specific state's requirements - most states have their own amendment forms you'll need to file separately. Don't panic about the penalties. If you file and pay soon, they'll be minimal. The IRS charges interest on unpaid taxes, but if you explain the situation (late-arriving 1099-B), you might qualify for penalty abatement.

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Nathaniel Stewart

•8M

Amended returns typically take 16-20 weeks to process, sometimes longer during busy periods or if there are complications. Filing the amendment doesn't stop interest from accruing, so it's best to pay the tax you owe as soon as possible even before your amendment is processed. You can make a payment directly through the IRS website using Direct Pay or IRS.gov/payments without waiting for the amendment to be processed. This will minimize additional interest charges. If you request penalty abatement (through a letter attached to your amendment or by calling the IRS), they'll consider whether the late 1099-B was truly beyond your control.

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Santiago Diaz

•8M

I ran into a similar situation last year with a missing 1099-B that showed up months after I filed. What saved me was using taxr.ai (https://taxr.ai) to analyze all my tax documents before amending. It caught some additional deductions I missed and showed me exactly how to report the capital gains correctly to avoid another rejection. The tool basically scanned my 1099-B and compared it against my original return, then highlighted the discrepancies and gave me step-by-step guidance on completing the 1040-X. The most helpful part was that it double-checked the cost basis reporting which is often why 1099-B amendments get rejected (at least that was my issue).

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Santiago Diaz

•8M

Yes, it absolutely works for current year returns too. It's especially helpful with crypto transactions since it can organize and categorize them properly, saving you from the nightmare of manually sorting through everything. It's different from TurboTax in that it's specifically designed to analyze documents and find inconsistencies or errors. TurboTax just asks you questions and fills in forms based on your answers, but taxr.ai actually reviews the documents themselves and compares them against what you've already filed or prepared. It doesn't directly connect to IRS systems, but it uses the same validation rules the IRS employs to check for issues before you submit.

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Debra Bai

•8M

After struggling with amended returns myself, I discovered that calling the IRS directly can actually resolve these issues much faster than filing amendments. The problem is getting through to a human - I spent DAYS trying to reach someone. Then I found Claimyr (https://claimyr.com) which got me connected to an actual IRS agent in about 20 minutes instead of the hours I'd wasted before. The agent was able to pull up my return, see the missing 1099-B info, and guide me through exactly what I needed to do. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c - basically they navigate the IRS phone tree for you and call you back when an agent is on the line. Saved me from sending in paperwork that might have gotten lost or delayed for months.

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Debra Bai

•8M

I used their service in the morning, around 9:30 AM Eastern time. They did all the waiting and navigating the phone menu system for me, then called me when they had an agent on the line. They don't just try random numbers - they have a system that continuously dials and navigates the IRS phone tree using the best possible options for your specific tax issue. They understand which departments handle which problems and which prompts to select. It's basically like having someone who knows all the shortcuts do the calling for you.

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KaiEsmeralda

•8M

Ok I'm honestly shocked - I tried Claimyr after posting my skeptical comment above, and they actually got me through to an IRS agent in about 35 minutes! The agent was able to see that my amended return had been rejected because of a mismatch between the capital gains reported and what the IRS had on file from the 1099-B. She walked me through how to correctly report it on Form 8949 before submitting the 1040-X again. This literally saved me weeks of confusion and probably would have prevented another rejection. I hate admitting when I'm wrong but this service is legit!

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Laura Lopez

•8M

Just a heads up - make sure you double check the cost basis on that 1099-B before filing your amendment. Sometimes brokerages report the proceeds but leave the cost basis blank or incorrect, which makes your capital gains look WAY higher than they actually were. This happened to me and I almost overpaid by thousands. Form 8949 is your friend here - you can report the correct cost basis even if it's wrong or missing on the 1099-B. Just make sure you have documentation to back it up (like purchase confirmations or statements showing when you bought the securities).

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Laura Lopez

•8M

You can fill in the correct cost basis directly on Form 8949 yourself - you don't need to wait for a corrected 1099-B. Just use code "B" in column (f) to indicate that you're reporting a cost basis different from what's on your 1099-B. Keep all your records showing the actual purchase price in case you're ever audited. Even a printout of your transaction history from your brokerage account can work as documentation. The IRS understands that cost basis issues are common, especially with older investments or when securities transfer between brokerages.

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