Rounding

[david rigby]

Instructions to Schedules H and I (only) include "Round off all amounts ... to the nearest dollar."

Anyone with experience to determine if this is literal? Can amounts be rounded to nearest $100 or $1000? Can I round on other schedules? (especially Schedule B)?

[RCK]

pax,

I've always taken it literally. It seems like the Schedule H instructions are pretty clear.

For the lines of Schedule B that tie to Schedule H, the same logic must apply. I suppose that in the lines that are actuarially calculated, you could argue that your reasonable actuarial cost method produces rounded results, and therefore that's what you put on the form.

RCK

[MGB]

I have not seen it in a long time, but I worked with an EA 20 years ago that always rounded all amounts to $1,000 on the Schedule B (obviously, these were very large plans where this did not lose any significant digits). To my knowledge, the IRS never questioned it.