Today I received a call from my investment firm. My share of Mom's annuities was distributed in a divided fashion in 2010 and 2011. I was missing a 1099R for 2011, and after I called for it, the firm finally called me today. They stated in the search for the missing 2011 1099, they had discovered the taxable portion of the 1099 for 2010 was incorrect, and the letter I had used for the 2011 taxes (it had the figures listed including the taxable portion) was incorrect also. It looks like I will owe taxes on another $14,000 or so. One was underreported and the other overreported, but still short. When I receive the corrected 1099s, do I have to refile taxes for both years, should I complain to the firm and have them pay any penalties, do I need to get a lawyer? How bad is this?
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You will likely need to file an amended return for 2010. If you have not yet filed 2011, you can file an extension, and pay any expected tax due.
You can ask them to reimburse your for interest and penalty, but if I think it perfectly fair that you pay the base tax that would have been due no matter what.
Do you need an attorney? That depends on what you are fighting for. At the end of the day, if they leave you hanging for 1,000 dollars in interest and penalty is it worth hiring an attorney? You have to decide.
Thanks, Randall. Appreciate your help.
Over 20 Years experience in resolving tough tax cases
Thank you. CLosing this item.