I filed my taxes too early and left out some important tax information from my stocks and bank interest. I know I have to file an amended return but I already received my refund from 2009. What should I do?

ANSWER

Expert Michael Lim's Answer:

You should file the amended return as soon as possible, and pay any additional taxes due.  By doing so, you will minimize the penalties and interest from underreporting your income and income tax.

Items such as stock sales, stock dividends, and bank interest are directly reported to the IRS through a standard from such as a 1099.  The IRS computers will eventually match up the discrepancy and send you a notice, making the changes to your return and then reassessing your taxes with penalties and interest added.

Michael Lim, CPA

California

16 yrs experience

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128 Ans.