What happens if you forgot to file a 1099-B with your tax return?

The good news is that since this involves a loss rather than a gain, the IRS is generally less concerned because you're not underpaying any taxes. However, technically you should still amend your return to include all required forms. When you have a 1099-B for stock sales, you need to report it on Schedule D and Form 8949 regardless of whether it resulted in a gain or loss. The loss can actually benefit you by offsetting other capital gains or up to $3,000 of ordinary income. Since your returns were just accepted, you have plenty of time to amend. You have up to three years from the original filing deadline to file an amendment. The process involves submitting Form 1040-X along with the corrected Schedule D and Form 8949.

I had a similar situation last year and I was pulling my hair out trying to figure out what to do! I finally discovered taxr.ai (https://taxr.ai) and it was seriously a game-changer. I uploaded my 1099-B that I had forgotten to include and it analyzed everything, then told me exactly what I needed to do. The system checked if amending was necessary in my case based on the actual tax impact. It saved me hours of research and worry! It also explained how capital losses work in plain English instead of tax jargon. They even gave me step-by-step instructions for filing an amendment that I could follow without paying extra software fees.

I was so skeptical about taxr.ai when I first saw it mentioned here, but I decided to give it a try with my forgotten 1099-B situation. I was shocked at how helpful it actually was! Uploaded my documents and within minutes, I knew exactly what I needed to do. The system analyzed my specific situation and showed me that my small capital loss would actually reduce my taxable income. It guided me through the amendment process without paying extra fees to TurboTax. The step-by-step instructions were super clear, and I was able to handle everything myself even though I'm definitely not a tax expert. I'm usually the first to call out services that don't deliver, but this one honestly saved me money and a ton of stress. Just wanted to update since I was the skeptic before!

If you're planning to amend and need to talk to the IRS first (which I highly recommend), good luck getting through to an actual person. I spent THREE DAYS trying to reach someone before I discovered Claimyr (https://claimyr.com). You can see how it works in this video: https://youtu.be/_kiP6q8DX5c I was at my wit's end with the endless hold times and disconnects when trying to ask about an amendment. Claimyr held my place in line and called me back when an agent was available. Went from waiting for hours to having an actual IRS person explain exactly what I needed to do with my missed 1099 form. Instead of guessing about whether to amend, I got a definitive answer directly from the IRS. Totally worth it when you need official clarification on stuff like this.

I have to eat my words about Claimyr. After my skeptical comment, I decided to try it myself when I needed to call the IRS about a similar amendment situation. I was absolutely certain it wouldn't work, but I was desperate after multiple failed attempts to get through on my own. To my complete surprise, I got a call back within 90 minutes connecting me to an actual IRS agent! I was able to ask specific questions about my amendment needs and got clear guidance. The agent confirmed that for my situation (also a forgotten 1099), I definitely needed to file an amendment even though it was a small amount. I've spent countless hours on hold with the IRS over the years, and this saved me an entire day of frustration. I rarely admit when I'm wrong, but in this case, I was definitely wrong about this service.

Everyone's talking about services, but here's a free DIY solution: you can actually amend your return yourself without paying TurboTax again. Just download Form 1040-X and the updated Schedule D and Form 8949. Since it's a loss, you'll likely get a slightly larger refund. The 1040-X form is pretty straightforward - you basically just show the original amounts, the corrected amounts, and the difference. Then attach the new Schedule D and Form 8949 showing the stock sale. Mail it in (can't e-file amendments yet) and wait for processing. With a small loss like that, there's no penalty risk - if anything, the IRS might owe YOU money!

Has anyone actually gotten an IRS notice for missing a 1099-B with a LOSS? I've never heard of anyone getting in trouble for not reporting something that would have given them a bigger refund. The IRS typically only cares when you underreport income.

You should definitely amend your return to include the 1099-B, even though it's a loss. While the IRS is generally less aggressive about pursuing losses since you're not underpaying taxes, they still expect all required forms to be reported. The $600 loss can actually benefit you - it will reduce your taxable income and potentially increase your refund. Capital losses first offset any capital gains you had, and if you don't have gains (or the loss exceeds your gains), you can deduct up to $3,000 against ordinary income. Since your returns were just accepted, you have plenty of time to file Form 1040-X. The process isn't too complicated - you'll need to include the corrected Schedule D and Form 8949 with your stock sale information. You can do this yourself without paying TurboTax amendment fees by downloading the forms from the IRS website and using your original return PDF as reference. Better to be proactive about this since brokers report 1099-B information directly to the IRS, and their computers may eventually flag the discrepancy during matching processes.

Just wanted to add my experience here - I was in almost the exact same situation last year! Forgot to include a 1099-B for a stock sale that resulted in about a $800 loss. I was freaking out thinking I'd get in trouble, but it turned out to be much less scary than I thought. I ended up filing the amendment myself using Form 1040-X, and it was actually pretty straightforward. The hardest part was just figuring out how to fill out Schedule D and Form 8949, but the IRS instructions were clearer than I expected. The whole process took me maybe 2 hours spread across a weekend. The best part? I got an additional refund of about $180 because that loss reduced my taxable income! So not only did I not get in trouble, I actually got money back. Just goes to show that being honest about mistakes usually works out better than you think it will. Don't stress too much about this - you caught it early, it's a loss not a gain, and you have plenty of time to fix it properly.

I went through something very similar about 6 months ago! Completely forgot about a 1099-B for some mutual fund shares I sold at a loss. I was so worried I'd get penalized, but it actually worked out in my favor. The key thing to remember is that since it's a loss, you're not trying to hide income from the IRS - you're actually entitled to a tax benefit you didn't claim. I ended up amending my return and got back an extra $240 because the loss offset some of my other income. One thing I learned is that you definitely want to amend sooner rather than later, even though you have up to 3 years. The IRS matching process will eventually catch it anyway since brokers report directly to them, so it's better to be proactive. Plus, why wait for money that's rightfully yours? The 1040-X form looks intimidating at first, but it's really just showing what you originally reported versus what it should have been. Take your time with it and don't be afraid to call the IRS practitioner priority line if you get stuck on any part of the forms.