Tax Law (Questions About Taxes)/Amending 2015 Tax return


I just filed my 2015 taxes (Federal and NY State)  and I just realized I left off some 1099's:  two 1099-b's; one reporting a small capital loss (-$142) from sale of a mutual fund, and another reporting the sale of a NQSO stock option (which was already technically reported as income because it was included on my W2, the net proceeds were $600)

also, I'm expecting a 1099-DIV which I forgot about because I bought some stock and paid out dividends last year, although the amount is less than $50.  

I'm debating on whether or not I should amend the return an send in a 1040X and IT201-X.
I'm not too worried about the extra $25 or whatever that I would get back, I'm already getting back $1100 so it doesn't matter to me. but I don't want to get fined, audited or otherwise penalized for failing to report all the income, or all the stock transactions.  Will the unreported $50 and the unreported stock loss send up red flags with the IRS?

on the other hand, I hear that amending a return may increase the chance of getting audited.  and nobody wants to go through that.  (although, my income is $52,000, so I'm in the low risk bracket apparently).  

Basically, I just want to know what option would be best for me to do to minimize any further issues with the IRS.



Thanks for your question.

What is going to happen is that the IRS computers will generate a CP-2000 and send you a bill for the additional tax. The problem with this document is that it may not take into consideration your basis, so the tax bill could be several thousand dollars more than the actual amount would be. Then you have to prove to them that these items had basis and your actually owe much less. I've had several cases where the individual got a CP-2000 for $25,000 or more and, in the end, they ended up owing less than $1,000.

So you are going to have to answer one way or the other at some point. Be proactive, and submit the amended return to avoid having to straighten things out later with the IRS.

Hope this helps.

John Stancil, CPA

Tax Law (Questions About Taxes)

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John Stancil, CPA


I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at I also offer seminars and consultations to churches and clergy on their tax issues at Also visit my blog, I am listed on Tax Connections at Prepare and file your own taxes at


I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

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