Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Taxes & Form 1099 Composite Corrections
Old 04-05-2014, 11:00 AM   #1
Dryer sheet wannabe
 
Join Date: Apr 2010
Location: omaha
Posts: 13
Taxes & Form 1099 Composite Corrections

Just received my 4th correction of Chas Schwab Form 1099 Composite and of course taxes were e-filed after the 3rd correction.

Seems like a lot of corrections for Tax Year 2013. Appears that BDC's are the latest culprit.....dividends received in mid January now credited to TY 2013.

Frustrating
__________________

__________________
leftymd is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 04-05-2014, 01:05 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 8,615
So for next year, you are filing for an extension and then submitting your return in October 2015, right?
__________________

__________________
LOL! is offline   Reply With Quote
Old 04-05-2014, 01:14 PM   #3
Thinks s/he gets paid by the post
 
Join Date: Jul 2005
Posts: 3,862
I'm still sitting on my return, but I've only had one corrected 1099 in the past 10 years or so.
__________________
Animorph is offline   Reply With Quote
Old 04-05-2014, 02:17 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 16,456
We went ahead and filed. Fidelity didn't have any corrections since 2/14. 2004 or thereabouts was the only year that we had to submit an amended return due to a late 1099 change (April 16th no less!). I think some major tax laws changed that year and caused delays with mutual funds. Still we wait until early April to file to be sure.

All done - yay!
__________________
Well, I thought I was retired. But it seems that now I'm working as a travel agent instead!
audreyh1 is offline   Reply With Quote
Old 04-05-2014, 02:25 PM   #5
Thinks s/he gets paid by the post
steelyman's Avatar
 
Join Date: Feb 2011
Location: Triangle
Posts: 3,218
I've only been audited once, and I think it was caused by me moving between states, having lots of dinky jobs and (most importantly) having no idea what I was doing.

The guy shows up, we go over my return, then he says, "You don't have any money, do you?".

I said, "Yeah, you noticed that, huh?".

(back in the 80s)
__________________

steelyman is offline   Reply With Quote
Old 04-05-2014, 02:54 PM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
braumeister's Avatar
 
Join Date: Feb 2010
Location: Northern Kentucky
Posts: 8,585
I've been audited twice, but just postal audits. In both cases, I had simply screwed up, but didn't actually underpay my taxes.

They sent a letter pointing out a mistake, I filed a corrected return, they sent another letter saying it was cool.

Since the new regulations allow the brokerages to send 1099s out much later than they used to. I haven't had a problem. I still wait until March to file, but I don't deal with any K-1s any more, either.
__________________
braumeister is offline   Reply With Quote
Old 04-05-2014, 03:09 PM   #7
Moderator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Rocky Inlets
Posts: 24,412
Quote:
Originally Posted by leftymd View Post
Just received my 4th correction of Chas Schwab Form 1099 Composite and of course taxes were e-filed after the 3rd correction.

Seems like a lot of corrections for Tax Year 2013. Appears that BDC's are the latest culprit.....dividends received in mid January now credited to TY 2013.

Frustrating
Compare this with the previous version. A correction may be a simple classification change that does not affect taxable income.
__________________
MichaelB is offline   Reply With Quote
Old 04-05-2014, 04:36 PM   #8
Full time employment: Posting here.
 
Join Date: Jan 2008
Posts: 882
Poster child for filing tax return just before it is due (October 15).
__________________
jebmke is offline   Reply With Quote
Old 04-21-2014, 08:40 PM   #9
Thinks s/he gets paid by the post
JoeWras's Avatar
 
Join Date: Sep 2012
Posts: 2,517
I'm very, very irritated right now. I just got a corrected 1099 today (dated 4/13/2014).

This is the 3rd 1099 from this firm. I waited to the last minute to file and this is my reward.

I'm just venting. In this day and age, I find this kind of thing to be ridiculous.

Question: this is going to give me $600 or so of capital gain. So I'll owe more tax. Do I have to pay a penalty on this? I mean, this is beyond my control.

So, dang, frustrating.
__________________
JoeWras is offline   Reply With Quote
Old 04-21-2014, 09:03 PM   #10
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 8,615
Good rant, but why in the world did you file before October?

Oh, we got a corrected 1099-R on Saturday which would normally affect our 2012 tax return, but we planned ahead, so we don't have to do anything about it.
__________________
LOL! is offline   Reply With Quote
Old 04-21-2014, 09:03 PM   #11
Thinks s/he gets paid by the post
 
Join Date: Nov 2011
Posts: 2,357
Poor management like that would encourage me to sell off the asset generating delayed 1099s.
__________________
GrayHare is online now   Reply With Quote
Old 04-21-2014, 09:21 PM   #12
Moderator
Alan's Avatar
 
Join Date: Jul 2005
Location: Eee Bah Gum
Posts: 21,077
Quote:
Originally Posted by LOL! View Post
Good rant, but why in the world did you file before October?

Oh, we got a corrected 1099-R on Saturday which would normally affect our 2012 tax return, but we planned ahead, so we don't have to do anything about it.
I'm curious how you managed that. Surely you filed your 2012 taxes by October 2013? If so, why don't you have to file an amended 2012 return?
__________________
Retired in Jan, 2010 at 55, moved to England in May 2016
Now it's adventure before dementia
Alan is offline   Reply With Quote
Old 04-21-2014, 09:34 PM   #13
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 8,615
@Alan, my spouse had an excess deferral to her 401(k) plan in 2012 because she switched jobs and then had a corrective distribution in 2013. The 1099-R showed up in 2014 with the wrong amount and the wrong code in Box 7. We expected that the 401(k) custodian would screw it up because they screwed up the corrective distribution in the first place. Twice. And they fulfilled our expectations. It took multiple tries to get a corrected 1099-R and we finally succeeded.

But we filed our 2012 return last October with the correct amounts assuming the 1099-R coming in 2014 would eventually get corrected, so we had put the correct amounts on the return in the first place.

Does that make sense?
__________________
LOL! is offline   Reply With Quote
Old 04-21-2014, 09:39 PM   #14
Moderator
Alan's Avatar
 
Join Date: Jul 2005
Location: Eee Bah Gum
Posts: 21,077
Quote:
Originally Posted by LOL! View Post
@Alan, my spouse had an excess deferral to her 401(k) plan in 2012 because she switched jobs and then had a corrective distribution in 2013. The 1099-R showed up in 2014 with the wrong amount and the wrong code in Box 7. We expected that the 401(k) custodian would screw it up because they screwed up the corrective distribution in the first place. Twice. And they fulfilled our expectations. It took multiple tries to get a corrected 1099-R and we finally succeeded.

But we filed our 2012 return last October with the correct amounts assuming the 1099-R coming in 2014 would eventually get corrected, so we had put the correct amounts on the return in the first place.

Does that make sense?


Yes, just about!!
__________________
Retired in Jan, 2010 at 55, moved to England in May 2016
Now it's adventure before dementia
Alan is offline   Reply With Quote
Old 04-22-2014, 08:41 AM   #15
Thinks s/he gets paid by the post
JoeWras's Avatar
 
Join Date: Sep 2012
Posts: 2,517
Quote:
Originally Posted by GrayHare View Post
Poor management like that would encourage me to sell off the asset generating delayed 1099s.
I am firing up my browser right now to do so. I am SO FED UP with this asset.

Yet it may be communications between the fund company and broker. Perhaps they use carrier pigeon? Or perhaps the broker missed something.

I mean, this wasn't even a recharacterization. It was a MISS of cap gains.

Got to remind myself: always put 'weird' assets in IRAs...
__________________
JoeWras is offline   Reply With Quote
Old 04-22-2014, 09:27 AM   #16
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 16,407
Did they miss the sale or misstate the basis? If they missed the sale, then you could have caught it. Unless you keep track of your own basis then it's on them.

However, if I had an asset that was habitually generating corrected 1099 forms I would take a hard look as to whether the diversification and returns it provided were worth the aggravation.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
pb4uski is online now   Reply With Quote
Old 04-22-2014, 09:45 AM   #17
Thinks s/he gets paid by the post
Rustward's Avatar
 
Join Date: Apr 2006
Posts: 1,572
Do you track your capital gains yourself, or do you just depend on getting the 1099's?

I do both and reconcile the 1099's with my own records.
__________________
Rustward is offline   Reply With Quote
Old 04-22-2014, 11:47 AM   #18
Thinks s/he gets paid by the post
JoeWras's Avatar
 
Join Date: Sep 2012
Posts: 2,517
It was a mutual fund that deals in wonky stuff like gold. I had very little position in it. Now I'm done. It is over.

So, I didn't have a sale, I had a "distribution". For mutual fund distributions, I rely on the 1099. I don't sit there and do a correlation between all my distributions recorded on Quicken and my 1099s.

Now for actual sales, I do all the math especially since I tend to hold a long time, and most of my holdings are before the brokers/fund companies had to keep track of basis. I would have caught that.
__________________
JoeWras is offline   Reply With Quote
Old 04-22-2014, 12:24 PM   #19
Recycles dryer sheets
SteveL's Avatar
 
Join Date: Aug 2005
Posts: 380
Just another note about Schwab. I get everything from them electronically including 1099s. They always send an email EXCEPT when there is a corrected 1099. You have to go back into their site and keep checking! I am in the process of complaining about this "violation" of their agreement to send email in this situation.
__________________

__________________
Retired -- 2001
SteveL is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Thoughts about put options as hedge to market corrections Russman FIRE and Money 16 09-19-2013 02:23 PM
Deck material, Composite or Wood dm Other topics 17 06-01-2009 01:47 PM
IRS form 1099-C dwk FIRE and Money 5 01-28-2007 03:36 PM
Roth Conversion Process: Form 1099-R ERD50 FIRE and Money 14 11-22-2006 02:50 PM

 

 
All times are GMT -6. The time now is 10:50 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.