How do I correct old tax return?
Hi,
In view of the changes in rules for Roth conversions in 2010 and my age approaching 70 in a couple of years, I have been reviwing my retirement accounts and all associated paperwork. I have just discovered that I inadvertently made an error in my 2006 federal income tax return. That year, I had a direct rollover from a 403(b) plan to a Traditional IRA. The 1099-R from the custodian shows the distribution code in block 7 as G. I did report this direct rollover, showing that the entire distribution was rolled over. However, I just recognized that I omitted a digit while typing in the distribution amount, i.e., I reported $964704.12 as $96470.12. I don’t believe this error affected my taxes owed, since this was a direct transfer of the entire account. At this point, should I be filing a corrected tax return for 2006 with IRS?
Thanks.
Gary_C
Permalink Submitted by mk foss on Mon, 2010-04-19 21:26
Generally you don’t have to amend a prior tax return unless you are changing tax or taxable income. IRS compares 1099s they receive with tax returns and notifies taxpayers of discrepencies generally in about 18 months. If there was a problem with your 2006 return – you would likely have received a letter from IRS between August 2007 and May 2008.
Don’t worry about it.