After I finished my taxed in last week of March, I received a Updated 1099 with only one modification where 199a is modified from zero to $50 or so. Refund is about to come in a week.

Initial values Box 1a = 500 Box 1b = 200 (all other boxes empty)

similar question is at Am I required to amend my tax return if I overpaid my taxes?

Updated values Box 1a = 500 Box 1b = 200 Box 5 = $50

The effect of this update is about $5 more tax refund. And to get this refund I will spend more in postage. So my question is , is it ok to leave the money with IRS or by law I am required to get it fixed.

  • 3
    How do you spend $5 in postage? A first-class stamp is 55 cents these days - and if you're like me, you probably have half a book of "forever" stamps that you bought 5 years ago in your desk drawer. – jamesqf Apr 9 at 3:46
  • I didn't think shipping physical copies of information was still a thing.... – xyious Apr 9 at 13:33
  • @jamesqf Certified Mail Fee is $3.50 and if one amends Federal, one also needs to ament State tax return – Neil Apr 9 at 16:21
  • @xyious per irs.gov/faqs/electronic-filing-e-file/amended-returns/… "You must file Form 1040X on paper and mail it to the IRS" – Neil Apr 9 at 16:22
  • Why certified mail, though? And I tend to forget about you unfortunate folks who live in places with state income taxes :-) – jamesqf Apr 9 at 16:33

I am not clear on the legal position on this as written in the law. However I asked a tax lawyer this question a few years ago (specifically about the case of getting an amended 1099 which only changed the liability slightly, in the tax payer's favor).

They advised me that unless the IRS proactively contacted the tax payer mentioning the correction and offering a refund that it was not necessary to do anything.

They also mentioned several exceptions, if the field had specific information filing requirements, such as effecting form 8938, but this is likely not relevant to you.

Note this is not legal advice and may not apply to your circumstances specifically, and this is not the right stack to get legal advice or ask questions of law.

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