Amended Return and Audit Notice... crossing in the mail?
Hi folks!
I made a very large (accidental) omission filing my individual Federal Tax Return this year on TurboTax Online. I am now in the process of preparing a 1040X, an amended return, which will show all of my income, including the 1099 I missed the first time around.
Here's my problem: I will need to send a large check to the IRS with my 1040X. The money to pay for this check is currently tied up in a stock investment. This stock is, on a day-to-day basis, somewhat volatile. To avoid selling it at a large (10-20%) loss, I would ideally need another 4-6 weeks to time my selling of it.
I am, however, very afraid of unduly delaying the sending of my 1040X. I must send this in before i receive an audit notice, for after that, it would be too late and I would have severe penalties. Would it be safe or foolish to assume that I have a month (or two?) to send in my 1040X? How quickly does the IRS generally send out audit notices in the case of an omitted 1099 capital gain (from an online brokerage)?
Thank you VERY much for any advice or help; I've been losing a lot of sleep over this.
John
Wed May 13, 2009 3:40 am
John Henry Member
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Ouch.
I didn't realize this forum was so inactive.
Thu May 21, 2009 2:34 pm
coaster Senior Advisor
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Couple of opinion points here, not IRS facts:
- the act of sending the ammended return with the large check is what will trigger a closer look. You have to do it, of course, but I wouldn't be too concerned about the timing. Get your ducks in a row before you send the return and the check. If everything's squared away by the ammended return you shouldn't need to worry about an increased audit risk.
- money you need short term shouldn't be in the stock market.
- you shouldn't be in an investment that causes you to lose sleep.
- you should never hold on to a losing investment with the hope of it turning around because you need the money.
~Tim~
Fri May 22, 2009 6:40 am
CutCompCosts Member
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Send in the return without the money. IRS will send you a bill. If you're late you're going to get dinged any ways so at this point it's an issue of interest. The longer you sit on the amended return the more likely IRS will start harassing you.
Fri May 29, 2009 7:38 pm
suraja Contributing Member
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If you are amending your return to claim a subtraction for a state tax-exempt pension, you should include a copy of the correspondence that you received from the payer of the pension to verify when you were a member of the qualifying retirement system. You should also send copies of your original Wisconsin Form 1 or Form 1A, your federal Form 1040 or Form 1040A, and a copy of the Form 1099-R that you received from the retirement system.
If you are amending your return because the IRS adjusted your federal income tax return, you must send a complete copy of the federal adjustment notice. Include all calculations and explanations.
