Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
I have heard brokers revising 1099-DIV's forcing a tax amendment. I am debating whether I should send in my tax return now or wait until closer to April 15th to see if any revised 1099s are issued. What is easier - revising a current tax form with new 1099 numbers, or filing the tax form now and sending in a 1040-X form later? What about interest on any difference if the 1040-X is sent in after April 15th assuming the revisions increase income?

Ken
Print the post Back To Top
No. of Recommendations: 0
I have heard brokers revising 1099-DIV's forcing a tax amendment. I am debating whether I should send in my tax return now or wait until closer to April 15th to see if any revised 1099s are issued. What is easier - revising a current tax form with new 1099 numbers, or filing the tax form now and sending in a 1040-X form later?

It is always easier - and cheaper - to file once instead of twice.

What about interest on any difference if the 1040-X is sent in after April 15th assuming the revisions increase income?

What about it? You'll owe it, if that's the case. But the IRS rate is 3%, so for a short term, it's never very much.

Bill
Print the post Back To Top
No. of Recommendations: 0
Do you keep track of your portfolio and the dividends that are paid to you during the year? Then compare your records to what is on the 1099. If they match, then file now.

There are some items that if own them (REITs, partnership K-1s), your broker will report after your 1099DIV is issued but your broker's website should have dates for those listed.

My guess is that revised 1099s is pretty rare, but that might depend on your brokerage.
Print the post Back To Top
No. of Recommendations: 2
My guess is that revised 1099s is pretty rare, but that might depend on your brokerage.

Actually, they're all too common, these last few years, which is why the brokerage firms have prevailed on the IRS for ever-later extensions of time to issue the original 1099 statements, so that corrected 1099s can be avoided.

It doesn't depend on the brokerage, so much as the investments in the account. REITs, REMICs, international funds, and bond funds are the usual suspects for corrected 1099s coming out.

Bill
Print the post Back To Top
No. of Recommendations: 0
I have noticed a decrease in corrected 1099s, and it is directly related to the 1099s being issued later. Now that it is mid-March, the odds of a corrected 1099 are decreasing.

I have received a corrected 1099 in mid-March. All non-zero entries were the same. Apparently, they didn't check if a corrected 1099 was required, and just issued them to everyone.
Print the post Back To Top
No. of Recommendations: 0
My brokers Always issue amended 1099's, sometimes more than one. "Dividends" get reclassified between qual, non-qual, returns of capital, you-name-it. And for this 2013 tax year, they're inconsistent about including option premiums in reported buy/sale amounts. So I routinely file Form 4868 Application For Extension of Filing Time.
Print the post Back To Top
Advertisement