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Just received a 1099-INT for 2011 today!!!

Discussion in 'The Okie Corral' started by HollowHead, May 30, 2012.

  1. HollowHead

    HollowHead Firm member

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    Received a 2011 1099-INT today from an investment account at Capital One dated and postmarked last week. Now what? :steamed: HH
     
  2. Half-Breed

    Half-Breed ..... CLM

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    If the interest accrued is minimal, it's not really anything to worry about.
     

  3. SMOKEin

    SMOKEin

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  4. HollowHead

    HollowHead Firm member

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    It's a touch over $4K. HH
     
  5. Half-Breed

    Half-Breed ..... CLM

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    Then you may need to file a 1040X.
     
  6. cgwahl

    cgwahl Sheriffs a near

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    Then I recommend you buy some Vaseline in bulk.
     
  7. certifiedfunds

    certifiedfunds Tewwowist

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    What is going on? I have 3 envelopes on my desk that say "Tax Document" that just came in?
     
  8. HollowHead

    HollowHead Firm member

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    I would imagine that the postmark and date would keep this down to a small jar. No? HH
     
  9. .264 magnum

    .264 magnum CLM

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    Happened to me once in 1999 - a bang up year for me. I amended my return. Payed the tax due and a small fine - like $100.
     
  10. HollowHead

    HollowHead Firm member

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    I have no problem whatsoever paying the tax due...but a fine? Shouldn't Capital One be responsible for such? HH
     
  11. Half-Breed

    Half-Breed ..... CLM

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    [ame="http://www.youtube.com/watch?v=XL4e6qKt8h0"]Here Rattler Here - YouTube[/ame]
     
  12. cgwahl

    cgwahl Sheriffs a near

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    My mom got audited once for not reporting something she sold. The bank never sent her a 1099B I think. If I recall correctly, the IRS basically said she owed a few thousand because of the sale, fine and interest. Luckily, it turned out she sold at a loss so she got money back. It even included interest on which she then got a 1099 from the IRS for the following year.

    Basically you're expected to know you were supposed to get it. They won't care you didn't receive it until today.

    I was mostly joking in regards to the Vaseline. The fine/interest probably won't be that bad since you got it not to far after April 15th.
     
    Last edited: May 31, 2012
  13. articulate

    articulate

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    I always receive form 5498 for my IRAs at the end of May every year. The timing of the form is because contributions for the previous tax year are allowed up until tax day (April 17th this year) of the following year. It always pissed me off the first couple years I received them because, like you, I couldn't understand why a tax form was showing up a month after my return was filed. However, once I understood the reason for the timing (prior-year contributions through tax day of the proceeding year) it actually made sense.

    I don't know the details of your 1099-INT, but if it is related to a retirement plan the issue may be similar to what I mentioned above. There are some resident financial advisers on this site that will likely be along shortly to explain.

    ...or maybe the bank just screwed the pooch and forgot to mail it.
     
  14. airmotive

    airmotive Tin Kicker

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    I got one last week! Turns out, it was just from my health savings account, so it ain't much. But still!
     
  15. Rabid Rabbit

    Rabid Rabbit

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    Nope, they look at it as your fault, they might ding the bank for sending it late but you are at fault for not realizing you were missing a document from your bank. Kinda of like if your employer didn't send your W2 form.
     
  16. Batesmotel

    Batesmotel

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    Same here. HSA info just came. Don't banks have calendars???
     
  17. devildog2067

    devildog2067

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    There shouldn't be a fine, you just have to pay "interest" on the amount you owed since April. Shouldn't be much.
     
  18. Z71bill

    Z71bill

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    It is still 100% your responsibility to keep track of / report the income you earn. Even if they never send you a 1099.

    Honestly did you not know you had $4K in income from Capital One?

    The real bad news is not the extra tax or interest you will pay -

    I have seen this many times -

    You file a 1040X to amened your return & report the extra $4K -

    The IRS was also just notified you have $4K of additional income.

    They may send you a bill - IN 3 OR 4 MONTHS - based off this new information - they will calculate the additional tax & interest - maybe throw in an underpayment penalty & interest on the underpayment penalty.

    The problem is - by the time you get this bill you have already filed your 1040X and have already paid the tax.

    So then you need to contact the IRS and explain to them that you already paid it -

    This will be a disaster because no matter how hard you try and explain it to some brain dead government worker that you already paid it - they will insist you pay the bill they sent you.

    You may spend 100 hours on hold waiting to talk with an IRS agent - 20 hours talking with the IRS - send them numerous letters and proof that you paid the tax - but they will lose the letters - have no record of the calls you "claim" you made - they will still be sending you DEMAND letters for payment in 2014 -

    This may roll over into future tax returns - they may take some of your tax payments you make in 2013 and apply them to the amount they billed you - then claim you underpaid 2013.

    All I can say is good luck.
     
  19. LoadToadBoss

    LoadToadBoss IYAAYWOT

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    File an amended return with an explanation that the 1099-INT was not delivered to your until May 30th. Pay any additional tax with the Form 1040-V payment voucher. They may send you an additional bill for any interest/penalties.

    As others have said, you need to shoulder some of the blame. If you have an account that accrues $4K of interest, you should know about it when preparing to file your taxes. You probably had a bank statement for the account that listed the YTD interest for the account. Even if you didn't get a 1099-INT, you can still use that bank statement to complete the Schedule B. Oh, be sure to include the Schedule B with your form 1040X.
     
  20. HexHead

    HexHead

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    In the future, file an extension. Send in what you expect to owe with the extension so you're not accruing interest and penalties. Then just send in the final return in Oct. with anything else you might owe.