Hello again cooldude,
It's hard to say whether or not the IRS would actually contact you about this 1099 form not being included on your tax return. Your friend is correct that the tax consequences would be negligible. Even if you were in the highest tax bracket of 35%, your tax on this would only be $4.20. If you are in the 10% bracket, your tax will only be $1.20.
But even with such a low amount of tax dollars involved here, because the IRS uses computerized systems to check your returns, it's possible it may kick out a notice saying you have not filed all of your tax forms.
The best thing to do is just go ahead and file an amended return
to add this interest to your income, that way you know it is taken care of. An amended return is filed on Form 1040X and must be mailed with any extra tax you may owe.
Filling out a Form 1040X is not all that difficult, particularly for a small change such as this one. I just actually did the same thing for my son for a W-2 he received late that was only for $48.00. I just wanted to go ahead and get if filed that way I know it is taken care of, and don't have to worry about getting a notice two years from now, so you should probably consider doing the same with this 1099 form.
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Thank you cooldude, and let me know if you have more questions.