Originally Posted by
raj_cl
I see lot of academic discussion on this thread...which is great.
Just checking if people can share specifically how have they treated the Citi 1099s on their tax returns for this year i.e. reporting the amount originally mentioned on the 1099, or reporting a lesser amount but greater than zero, or reporting zero, or totally disregarding the 1099?
Thanks in advance...maybe we can keep this thread alive, to see what specifically have people done, and then if/when do they get any queries from IRS...would be good tangible evidence to further substantiate the academic discussion.
I think that is a great idea, but just keep in mind that the IRS correspondence system for "mis-matches" is a loooong process. The IRS usually sends matching notices withing one year of the return filing date, but many such notices are generated 1-2.5 years after the filing date, particularly when the amounts aren't large. I mention this because one poster said he reported an amount on his tax return lower than the amount on the 1099 without using the recommended method of showing the gross amount and reducing it by a FMV adjustment, and this poster indicated that he didn't receive a notice from the IRS. Others thought this was meaningful, but I'm not so sure, since he may yet receive a matching notice.