Wrong Name on Brokerage 1099

Virginia VanKuran on

The 1099 we received from our brokerage firm has the wrong name printed with our club name and address. It is the name of the president who was the primary contact when we set up our account, not the treasurer who will prepare and submit the taxes. Does anyone know if this matters to the IRS or how to address it when taxes are prepared?

Virginia Van Kuran
Tower Investment Club
Palo Alto, California

ira smilovitz on

The individual's name (if present) is irrelevant. As long as the club name and EIN are present, that's all that matters. Even the club name doesn't have to be exactly correct.

Ira Smilovitz

On Sat, Feb 21, 2015 at 9:09 AM, Virginia VanKuran <virginia@vankuran.com> wrote:

The 1099 we received from our brokerage firm has the wrong name printed with our club name and address. It is the name of the president who was the primary contact when we set up our account, not the treasurer who will prepare and submit the taxes. Does anyone know if this matters to the IRS or how to address it when taxes are prepared?

Virginia Van Kuran
Tower Investment Club
Palo Alto, California

Laurie Frederiksen on

In terms of the IRS, if your club treasurer is now the "Responsible Party" the IRS should contact with questions about your club finances, make sure to update their information using this form:

Form 8822-B

You might also want to update your contact information with your broker.

Laurie Frederiksen
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Lawrence Adams on

Virginia:

You might want to double check that the brokerage account is actually in the club's name and not an individual member's name to ensure receiving correct 1099's.

After I joined a club that already had been in existence a few years, I eventually became the treasurer. When the books were turned over to me and the club had around $40,000 of cash and stocks in an online broker account, I quickly realized that the account was not in the club's name but rather under the previous (and founding) treasurer's personal name even though the account had the correct club tax identification number.

I never regarded it to be an intentional act but when the treasurer opened the broker account, and not having ever done that before, she somehow got confused with the paper work and the account wound up with her name on it rather the the club's name.

It took a letter from her admitting the account was not her personal account, copies of the original Partnership Agreement registered with the state, the signatures of all 15 partners in the club attesting that it was indeed the club's account and not the treasurer's personal account, and three months of phone calls, emails, and certified Postal Service mailings to get the broker to rectify the error and get the club's name as the account holder and future 1099's to read correctly.

I would wish that on no one but if you even suspect that perhaps an error might exist as it did for us, I would start taking steps to resolve the issue.

Best of luck,

Lawrence Adams

On Sat, Feb 21, 2015 at 8:09 AM, Virginia VanKuran <virginia@vankuran.com> wrote:

The 1099 we received from our brokerage firm has the wrong name printed with our club name and address. It is the name of the president who was the primary contact when we set up our account, not the treasurer who will prepare and submit the taxes. Does anyone know if this matters to the IRS or how to address it when taxes are prepared?

Virginia Van Kuran
Tower Investment Club
Palo Alto, California

Virginia Van Kuran on

Thanks everyone for your help. Our club appreciates it.

Regards,

Virginia

On Feb 21, 2015, at 3:14 PM, Lawrence Adams <ladams70559@gmail.com> wrote:

Virginia:

You might want to double check that the brokerage account is actually in the club's name and not an individual member's name to ensure receiving correct 1099's.

After I joined a club that already had been in existence a few years, I eventually became the treasurer. When the books were turned over to me and the club had around $40,000 of cash and stocks in an online broker account, I quickly realized that the account was not in the club's name but rather under the previous (and founding) treasurer's personal name even though the account had the correct club tax identification number.

I never regarded it to be an intentional act but when the treasurer opened the broker account, and not having ever done that before, she somehow got confused with the paper work and the account wound up with her name on it rather the the club's name.

It took a letter from her admitting the account was not her personal account, copies of the original Partnership Agreement registered with the state, the signatures of all 15 partners in the club attesting that it was indeed the club's account and not the treasurer's personal account, and three months of phone calls, emails, and certified Postal Service mailings to get the broker to rectify the error and get the club's name as the account holder and future 1099's to read correctly.

I would wish that on no one but if you even suspect that perhaps an error might exist as it did for us, I would start taking steps to resolve the issue.

Best of luck,

Lawrence Adams

On Sat, Feb 21, 2015 at 8:09 AM, Virginia VanKuran <virginia@vankuran.com> wrote:
The 1099 we received from our brokerage firm has the wrong name printed with our club name and address. It is the name of the president who was the primary contact when we set up our account, not the treasurer who will prepare and submit the taxes. Does anyone know if this matters to the IRS or how to address it when taxes are prepared?

Virginia Van Kuran
Tower Investment Club
Palo Alto, California

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