Sojourner
Thinks s/he gets paid by the post
- Joined
- Jan 8, 2012
- Messages
- 2,610
I'm pretty sure I know the answer to this, but wanted to get validation from this very wise, knowledgeable group.
In reviewing my tax documents today, I've discovered two non-trivial mistakes on one of my 1099-DIVs. The first involves the mischaracterization of some proceeds as ordinary dividends (non-qualified), when they should be "cash liquidation distributions". The reporting of these proceeds as ordinary dividends vs. CLD is costing me roughly $2,000 in additional tax. The other issue is the incorrect reporting of a short-term transaction as a wash sale. This one isn't so egregious in nature (only about $400), but I would like to discuss it with the brokerage and see if it could be cleared up before filing my returns.
I am due small refunds from both federal and state as things stand now, so I'm leaning towards filing for an extension to give myself time to work with the brokerage to get an updated, corrected 1099-DIV. Seems like this would be preferable to filing now and either foregoing the $2,400 or filing an amended return later, if/when I get a corrected 1099-DIV. Seems like a no-brainer to simply file for an extension, but please tell me if you disagree or if I'm missing something here.
In reviewing my tax documents today, I've discovered two non-trivial mistakes on one of my 1099-DIVs. The first involves the mischaracterization of some proceeds as ordinary dividends (non-qualified), when they should be "cash liquidation distributions". The reporting of these proceeds as ordinary dividends vs. CLD is costing me roughly $2,000 in additional tax. The other issue is the incorrect reporting of a short-term transaction as a wash sale. This one isn't so egregious in nature (only about $400), but I would like to discuss it with the brokerage and see if it could be cleared up before filing my returns.
I am due small refunds from both federal and state as things stand now, so I'm leaning towards filing for an extension to give myself time to work with the brokerage to get an updated, corrected 1099-DIV. Seems like this would be preferable to filing now and either foregoing the $2,400 or filing an amended return later, if/when I get a corrected 1099-DIV. Seems like a no-brainer to simply file for an extension, but please tell me if you disagree or if I'm missing something here.