There is nothing really to panic here, though if you don' take action, you could end up paying penalties and interest on under-eporting taxable income.
The best approach usually is to voluntary file an Amended tax return! Gnerally, I have found that the IRS wld not assess any interest and penalties if you file an amended return before a tax notice is sent you.
I would recommend that you approach a CPA near you and have him file an amended return, this tax form is called Form 1040X! This form is really a little complicated so I woud avoid filling out manually and let a CPA fill out, it may cost you between $125 to $175 depending on the state you live!
But, please take immediate action on this!
Last edited by TaxGuru : 03-06-2007 at 09:33 AM.