You May Not Get Any Amended Form 1099s for Investment Income This Tax Season

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smart-investmentsOne of the more annoying aspects of tax filing has been the amended Form 1099s that people receive from investment brokers late in the filing season that require amended returns. Well, the number of these amended Form 1099s may decline substantially this filing season.

For investment income Form 1099s filed after December 31, 2016 (i.e., for tax years 2016 and later) there is a new safe harbor for de minimis errors on informational returns. If the broker makes an error that differs from the correct amount by no more than $100 or tax withheld differs by no more than $25, the broker is not required to issue a revised Form 1099 unless the payee elects that the safe harbor not apply.

Most of the corrected Form 1099s issued late in the filing season tend to report changes that are fairly small amounts, and they are generally under $100. So this safe harbor should substantially reduce the number of amended tax returns that are required because of corrected investment income Form 1099s.

If you have any questions on how this applies to you, please feel free to give us a call at 248-538-5331.


Buzzkill Disclaimer:  This post contains general tax information that may or may not apply in your specific tax situation. Please consult a tax professional before relying on any information contained in this post.

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