Wesley Taylor, Jr. wrote:
> What action do we take when there is a decrepancy  in the
> amount report on our 1099 from our broker? The tax report we
> did through Bivio shows our qualified dividends as slightly
> higher.

A lesson learned is that you must check your records against
the broker's  End Of Year 1099 to make sure that there are
no decrepancies .  Our broker did a reversal, I believe they
made a mistake in which they had to correct it and Bivio
AccountSync did not recognized the reversal in which our
dividends End of Year report was higher than what was shown
on the 1099.  I had to go in and delete the entry.

There is another lesson YET to be learned this year. Many clubs may find themselves receiving revised 1099s in the next three-four weeks. There have been many errors in reporting mutual fund dividends and some corporations which began paying dividends last year were unprofitable for the year. This changes "dividend" payments into return of capital payments. ROC is not taxable in the year received, it reduces your cost basis in the stock. One example of this is EMC Corp.

 

One should always wait to file your partnership return until mid-late February and it doesn't hurt to call the broker after receiving the 1099-DIV and asking if there are any anticipated corrections.

 

Ira Smilovitz