Just-Lisa-Now-
Level 15
Level 15

Ive seen a few of them for 2016.   The program wont even let you input qualified dividends in box 1b of a 1099DIV without the same or larger amount of ordinary dividends in Box 1a.

It makes the amount due on the CP2000 wrong since its not computing the tax as qualified dividends, so rather than have the client just pay the amount on the CP2000 I've got to prepare a 1040X and attach it to the CP2000 response.

Pretty sneaky IRS, DIYers will just see that they forgot to include the 1099DIV and just pay the amount shown on the notice!


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