Posting this here in case others have the same problem. I
sent to Bivio Support and am waiting for a response.

According to the FAQ on the Inteliquent website, the special
one-time cash dividend that IQNT paid on 10/30/2012 was
subject to a NASDAQ rule that applies to a dividend that
exceeds 25% of a company’s price.

Here is the complete answer as posted:

Inteliquent does not pay a recurring dividend. However, on
October 5, 2012, Inteliquent announced that it will pay a
special one-time cash dividend of $3.00 per share. The
payment date for the special one-time cash dividend is
October 30, 2012. At $3.00 per share, the dividend
represents approximately 33% of the Company’s closing stock
price on October 3, 2012. Pursuant to NASDAQ rules, when a
dividend is declared in a per share amount that exceeds 25%
of a company’s stock price, the date on which that company’s
shares will begin to trade without the dividend, or
ex-dividend, is the first business day following the payable
date. The Company understands from NASDAQ that, because the
dividend is expected to exceed 25% of the Company’s share
price, NASDAQ will apply this rule, and the Company expects,
in accordance with this rule, that the ex-dividend date as
set by NASDAQ will be October 31, 2012, the first business
day following the payable date for the dividend.
Shareholders of record on the record date who sell their
shares prior to the ex-dividend date will not receive the
special cash dividend. The record date for the special
one-time cash dividend is the close of business on October
16, 2012

However, when I try to use 10/31/2012 as the ex-dividend
date, Bivio does not allow it, advising that “the
ex-dividend date may not occur after the transaction date”.
The Ex-Dividend Date for IQNT was blank, probably because of
the oddity of such an occurrence.

The NASDAQ website shows the Ex-Dividend Date as the Special
Dividend Date of 10/31/2012 and the Special Dividend Payment
Date as 10/30/2012.

Here’s the link: http://www.nasdaq.com/symbol/iqnt

The dividend was credited to our account on 10/30/2012 and
was reported as such on the 1099.

Please advise how to proceed.

You have encountered one of the unusual transactions that
are making this tax season so vexing for us. There are good
reasons that bivio does not allow users to enter ex-dividend
dates after the payment date and rarely is it a problem. But
then transactions like this come along.

You can safely enter the ex-dividend date for this
transaction as 10/30/12. In this specific case, changing the
ex-dividend date will only be a problem for a club which
bought shares on 10/30/12 and sold them on 12/30/12. Since
12/30/12 was a Sunday, this is a moot point.

There is another issue which could affect some clubs that
receive special dividends. You cannot use a special dividend
to create a short-term capital loss.

Using the Intelliquent dividend as an example, if a club
purchased IQNT on 9/4 for $11 and sold it on 11/12 for $3,
it would have a $3 dividend and an $8 short-term capital
loss. Under provisions enacted in 2003 when the qualified
dividend rules were established, any loss associated with
the sale of a share which received an extraordinary dividend
(that is, more than 10% of the company price within 85 days
measured by ex-dividend dates, or more than 20% within one
year) will be considered long-term to the extent of the
extraordinary dividend.

For the IQNT transaction described above, there would be a
$3 qualifying dividend, a $5 short-term capital loss, and a
$3 long-term capital loss.

If any clubs think that they have capital losses from stock
sales which might have been affected by special dividends,
they should send a request to support@bivio.com asking us to
review their records. Include the name of the company which
you think might be affected.

Ira Smilovitz