Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
Hey All,

For the first time ever I completed (well, thought I had completed) my returns early and HAVE efiled... yesterday.

Today, I get a notice from a brokerage that my tax records were ready.. I know I hadn't traded in that brokerage in several years, but looked anyway...

Seems that I have a $55 profit from a 1099-B: Proceeds from Broker & Barter Exchange Transactions..

Apparently in July of 2012 I received the Duke Energy proceeds from a sell/merger or something with Spectra Energies... I'm not really sure what happened, but I need to figure out how to report or amend my return...I don't want to pay penalties and/or fines on a $55 mistake...

So, Now that I have a 1099-B form that I didn't file, what do I do????

I don't know if it matters, but I'm carrying over (for the past 8-10 years) a relatively large loss... since I don't trade in taxable accounts anymore, I've been taking the $3000 yearly deduction...I still have 24K carry over...

Any help or suggestions will be greatly appreciated..

Mick
Print the post Back To Top
No. of Recommendations: 0
Awwwh man,

After looking into this, it looks like for missing a $55 Proceed I'm gonna need to amend...

I filed early because I (really) need the return, the info from TT says to expect an 8-12 week delay if you file an amended return...

http://turbotax.intuit.com/support/iq/Amend-a-Return/How-to-...

So, should I wait and see if I get my refund, then file/MAIL an amended return or should I just proceed to the amended return?

Again, the 1099-B is 'Cash in Lieu' transaction for $55. I have no capital gains to report, but have a significant Carry Over loss that I've been using for years...

I guess it would just be applied to my Carry Over, but I really don't know how to proceed..

thanks for any help...

Mick
Print the post Back To Top
No. of Recommendations: 2
Don't panic. You should file an amended return, but it won't change your refund.

Duke did a 1:3 reverse stock split before merging with Progress. The Cash in Lieu transaction is normal for the liquidation of a partial share.

A partial share has a cost basis. You can determine the cost basis for the partial share, or if you don't have the patience use a cost basis of $0.

Wait for the IRS to process your return and refund. Your carry over loss will offset any possible gain. File an amended return after your refund has been processed.

If the IRS catches the inconsistency while processing your refund, they will send you a correction statement.
Print the post Back To Top
No. of Recommendations: 2
One year I realized that I had missed a small 1099 for the previous tax year. I decided that the penalty on underpayment of less than $10 in taxes wasn't worth the effort of filing an amended return, and I decided to wait for the IRS to notify me of the mistake.
Print the post Back To Top
No. of Recommendations: 0
One year I realized that I had missed a small 1099 for the previous tax year. I decided that the penalty on underpayment of less than $10 in taxes wasn't worth the effort of filing an amended return, and I decided to wait for the IRS to notify me of the mistake.

And, did they notify you?
Print the post Back To Top
No. of Recommendations: 6
So, Now that I have a 1099-B form that I didn't file, what do I do????

I don't know if it matters, but I'm carrying over (for the past 8-10 years) a relatively large loss... since I don't trade in taxable accounts anymore, I've been taking the $3000 yearly deduction...I still have 24K carry over...


First the lecture. Why wasn't there something in your 2012 papers showing that this happened? You deal with the tax implications of splits/spinoffs/mergers when they happen, noting your records. That way you don't find yourself trying to figure things out sometime down the road when you can't find anything. Your statement that you don't trade in taxable accounts any more can't be true or you wouldn't have gotten this payment. Maybe what you have just sits there, but that doesn't mean that you can totally ignore it.

Second the request. Please don't call your refund your "return." The return is what you file to claim your refund. It's like fingernails on a chalkboard to some.

Finally your hall pass. Make a note on your copy of your 2012 return to reduce your carryover by $55 (the proceeds in question) when you put it on your 2013 Schedule D. Don't bother with an amended return. This assumes that your state return doesn't require an adjustment.

Phil
Rule Your Retirement Home Fool
Print the post Back To Top
No. of Recommendations: 0
And, did they notify you?

No, either they never caught it or it was below a threshold worth attempting to collect.
Print the post Back To Top
No. of Recommendations: 0
Thanks Phil...

I have no problem getting lectured... will only offer minimal/explanatory responses..

Why wasn't there something in your 2012 papers showing that this happened?

I guess you mean that I should have noted the transaction back in July when it happened... you're obviously correct. Unfortunately, I haven't looked at an E*trade statement in quite awhile as I really didn't know there was anything in there but my Brk shares.

From the eTrade website, Your Forms 1099 & Details will be posted to your account by February 15, 2013 in accordance with the IRS deadline... unfortunately I filed yesterday.... I opened their email today and found the 1099-B..

Please don't call your refund your "return." The return is what you file to claim your refund. It's like fingernails on a chalkboard to some.

Noted and I sincerely apologize... I reread my post and definitely messed up there...

reduce your carryover by $55 (the proceeds in question) when you put it on your 2013 Schedule D. Don't bother with an amended return. This assumes that your state return doesn't require an adjustment.

Currently I will get a refund from my NC return, but I don't know how to figure out the effect of the $55 added income/proceeds unless I 'amend' or rerun the return through TT and then rerun the state portion...I know I should be able to look at the return (or the printed pdf of the return) and figure it out, but except for directly subtracting that amount from my state refund, I don't really know how to calculate it..

Any advice (with or without lecture) is most appreciated..

again, many thanks

Mick
Print the post Back To Top
No. of Recommendations: 0
vkg,

Don't panic. You should file an amended return, but it won't change your refund.

Many, many thanks... made me feel much better.

Duke did a 1:3 reverse stock split before merging with Progress.

Now that you point that out, I have a vague recollection of knowing that...

Wait for the IRS to process your return and refund. Your carry over loss will offset any possible gain. File an amended return after your refund has been processed.

Sounds like a reasonable plan... I will certainly wait a bit, then decide if it's better to go ahead and file an amended return or just proceed as suggested by Phil suggested below...

Make a note on your copy of your 2012 return to reduce your carryover by $55 (the proceeds in question) when you put it on your 2013 Schedule D. Don't bother with an amended return.

Again, thanks for the rapid response... hopefully I won't make such foolish mistakes in the future...

Best..

Mick
Print the post Back To Top
No. of Recommendations: 2
Currently I will get a refund from my NC return, but I don't know how to figure out the effect of the $55 added income/proceeds unless I 'amend' or rerun the return through TT and then rerun the state portion

Look at your state return. I don't know about NC, but if it's like most states it starts with Federal AGI and then makes adjustments to that number. If NC works that way and doesn't make any changes regarding capital gains, an amended Federal wouldn't change your NC.

Phil
Rule Your Retirement Home Fool
Print the post Back To Top
No. of Recommendations: 0
I guess you mean that I should have noted the transaction back in July when it happened... you're obviously correct. Unfortunately, I haven't looked at an E*trade statement in quite awhile as I really didn't know there was anything in there but my Brk shares.

Sooooo...what has been happening to the Duke dividends?

Barbara
Print the post Back To Top
No. of Recommendations: 0
Hey Barbara..

Sooooo...what has been happening to the Duke dividends?

Great observation... this year I have a total of $7 in Duke dividends... I need to look at the 2011 return (when I get home) to see if any Duke dividends were recorded... if not, I may have more of an issue than I thought....so now in any event, I didn't record the Proceeds of $55 and didn't file the dividends of $7... looks like an amended return is in my future...

Just another reason to be more careful....

Thanks again for all the help....

Mick
(feeling dumber by the day)
Print the post Back To Top
No. of Recommendations: 0
Mick,

Are you going to determine your cost basis for the liquidated partial share or just use a cost basis of $0?

At least they are small mistakes.

Did you receive a 1099 for previous years? For amounts less than $10, a 1099 DIV isn't required but can be issued.

Debra
Print the post Back To Top
No. of Recommendations: 0
Hey Debra,

Are you going to determine your cost basis for the liquidated partial share or just use a cost basis of $0?

definitely use $0...

Did you receive a 1099 for previous years? For amounts less than $10, a 1099 DIV isn't required but can be issued.

Will check and see when I get home, but sure don't remember one.... I don't remember seeing dividends of greater than $10 total in the past, but am certainly going to look back at the brokerage and my previous returns..

thanks again

Mick
Print the post Back To Top