There is some confusion about the adjustment entries you can make when you work through the Schedule D review form.

When your broker reports a cost basis in a 1099 "covered" category you need to make sure that the amount in the cost basis column is very close to the number they show on the 1099 (within a few cents). If their number differs significantly from the number bivio is showing, you need to figure out why. If the broker amount is wrong, that is when you would add an adjustment to show their amount.

But, the bivio number is still being used to calculate your reported gains and losses. Unless you know the broker number is wrong, a big adjustment may just be highlighting that there is something you need to fix in your bivio records. Using the Adjust basis link in this case will not fix the problem. You need to find out what it is in your accounting and fix it.

The new reporting is bringing a lot of past accounting mistakes out of the woodwork. We can help you work through whatever you might need to address. However, you have to realize, especially if you have years of tiny DRIP entries, that this might take quite a while during the height of a busy tax season. You'll need to be prepared for delays in getting your taxes done.

If you have an issue, the first thing you can do to figure out a problem is to go through the transactions for the security in question and make sure they have been entered in bivio correctly.

If that is the case, make sure the lots selected for the sale in bivio are the same ones your broker chose.

If everything still looks good there, you may have historical wash sale issues that didn't get accounted for. We'll need to help you address those.

Again, if you need help, email a copy of your 1099 to us at support@bivio.com Identify in your email the specific stocks you have a question about and hopefully the specific lots you have a problem with and we will add you to the queue to help you figure out what is going on.

Yes. And you will need to file an amended tax return if you have already filed. You'll also have to redistribute any K-1's you've given out and your members may need to file amended returns if they've already filed.

An amended 1099 is not uncommon for certain types of investments. For example, if, when a small company closes its books at the end of the year and finds out it does not have enough earnings and profits to cover its dividend payments, they will be reclassified as a return of capital. You'll find out about it on an amended 1099.