Payback Time

[S T]

Truncate $$ IRS

Lion,What I have been seeing on the CP 2000 notices recently IRS is rounding $$$ downward for pennies not dollars.

In otherwords, we would see a 1099B or W2G as being 1249.79, but IRS would round down to $1249. Personally if I would enter on my computer program it would be round up to $ 1,250.

Guess that might give us a margin of error for a few dollars. I have given up trying to match exactly on the 1099 B - stock sales, round up/down. If I am off more than $10
I just make a line item entry adjustment on the Schedule D for round up/down to match.

I believe the IRS gives us a margin of error for round up/down.

Sandy

[Lion]

Yes

Yes, I'm seeing the IRS just truncate the cents/rounding down to the nearest dollar. Hope we have a margin for error if they're doing a match on the "loan" payback.

[joanmcq]

The CP notices and eservices always just drop the cents. Only place I've seen it be more than a dollar or two difference is in the case of a large number of stock sales where the difference can be off by quite a few bucks if there are hundreds of transactions.

Otherwise, I don't think the computers are set up to flag for a few bucks discrepancy in less there is another, much bigger, issue at hand.

[David1980]

Draft 5405 came out.

http://www.irs.gov/pub/irs-dft/f5405--dft.pdf

Part IV, question 16b. Payment amount on 16.