club_cafe: Pengrowth "Dividends"
| HelpRegister |
club_cafe: Pengrowth "Dividends" >>Ira doesn't seem to agree, but I would enter the whole thing
as
non-qualified dividends. That way, you can take the foreign tax credit, your partners will be happy, and I can't believe even the IRS will be unhappy. Rip,
You're right, I don't agree. And here is why.... from the Pengrowth web
site:
"Pengrowth advises that a Substitute Schedule K-1 (Form 1065) will be
mailed to U.S. beneficial unitholders who owned Pengrowth units during 2004 on
or about March 1, 2005. ..."
"IMPORTANT: It has come to Pengrowth's attention
that a number of U.S. based brokerages have issued Form 1099s (Form 1099-MISCs
and/or Form 1099-DIVs) to unitholders of Pengrowth for the amount of
distributions received (likely reported as royalties in box 2 of Form 1099-MISC
or as ordinary dividends in box 1 of Form 1099-DIV) and Canadian taxes withheld
(reported in box 6 of Form 1099-DIV) during 2004. If Pengrowth unitholders are
in receipt of either a 1099-MISC and/or a 1099-DIV from their brokerage in
respect of the distributions received during 2004, Pengrowth recommends
unitholders pursue the following actions outlined below."
The note continues by explaining that Pengrowth is a limited partnership,
distributions are neither royalties nor dividends and that unitholders should
request that their brokerages "withdraw" the erroneous 1099-MISC/1099-DIV
forms.
Ira Smilovitz
Ira, << You're right, I don't agree. And here is why.... from the Pengrowth web site: >> I was mostly reacting to your other post, quoted below.... << The partner who signs the 1065 attests that "Under penalties of perjury, I declare ... this return ... is true, correct and complete." If they file incorrectly, the club and each of the members could be subject to penalties and interest. If the club has to wait until late March to file, then it has to wait until late March. It could be worse, some investment entities file for extensions and don't report their earnings until late summer. >> You do agree, don't you, that none of those dire things are going to happen if they just call the whole thing non-qualified dividends. As for the note from Pengrowth, I would say 'interesting', but so what. Probably most of the brokerage firms are not going to comply. If it were I as treasurer, I would take the path of least resistance, and get the return filed and the partners off my back. Rip West Saint Paul, MN |
|
||||||