Form 1099-A Error Correction
Receiving IRS Form 1099-A can be stressful, and discovering an error on the form adds to the confusion. Since this form impacts your tax filing, it’s important to address any mistakes promptly. Whether the error is incorrect dates, loan amounts, or property values, taking the right steps can help prevent IRS complications and ensure accurate tax reporting.
Common Errors on Form 1099-A
Typical errors might include:
- Wrong date of acquisition or abandonment
- Incorrect loan balance
- Mistaken fair market value of the property
- Incorrect indication of whether the borrower was personally liable
- Errors in the property description
Even minor mistakes can lead to incorrect tax calculations, so it’s essential to get these fixed before filing.
Steps to Take if You Find an Error
1. Review the Form Carefully
Double-check all boxes and compare the information against your loan documents, foreclosure notices, or other relevant paperwork to confirm the error.
2. Contact the Issuer (Lender or Loan Servicer)
Reach out to the financial institution or lender who issued the form. Explain the discrepancy clearly and provide any supporting documents that prove the correct information. Request that they issue a corrected Form 1099-A, also known as a “corrected return.”
3. Wait for the Corrected Form
The issuer is responsible for filing the corrected form with the IRS and sending you the updated copy. Do not file your tax return until you receive the corrected 1099-A unless the error is insignificant or you can accurately report based on your records.
4. Report Correct Information if Necessary
If you can’t get a corrected form before filing, attach an explanation to your tax return and report the correct information based on your records. You may want to consult a tax professional in this situation.
5. Keep Documentation
Maintain copies of all correspondence and documents related to the error and correction process. This will help in case of IRS questions or audits.
Conclusion
If your Form 1099-A has errors, act quickly by contacting the issuer and requesting a corrected form. Accurate tax reporting helps avoid delays, penalties, and potential audits. When in doubt, contact us today. Our dedicated team will present professional guidance to you through resolving form discrepancies.