Holy COW !!! IRS trouble....

[mikieb]

I get statements from my brokerage accounts... 1099-div and 1099-B and the like.... For the last few years, I just pitch them into a file and not worry... because... they are for my IRA accounts. I don't have any non IRA money that gets traded in any accounts.

I don't need to report any of this... because it will get taxed upon withdrawal... Right ?

The IRS sent me a CP-2000 on my 2019 taxed claiming that basis was not reported on stock sales inside of my IRA and I owe them $3800.

I fix up all they want and the bill came to $3600 and I paid it.... no sooner have I got that worked out... they hit me with a bill for $4800 for my 2021 taxes... . All the trades were inside of my IRA...

I just got done with my 2022 taxes and I reported the amounts on my 1099-div and 1099-B... From my IRA accounts, on my tax return.

What is up with this ? When did we have to start reporting trades inside of my IRA ?

Am I doing something wrong ? What do I have messed up ?

 

[Bowmannate2000]

That doesn't seem right to me, but I'm no expert.

 

[npaden]

Sounds like somehow they aren’t being shown as IRA accounts. Trades within an IRA should not be generating a tax bill.

 

[SAJ-99]

I get statements from my brokerage accounts... 1099-div and 1099-B and the like.... For the last few years, I just pitch them into a file and not worry... because... they are for my IRA accounts. I don't have any non IRA money that gets traded in any accounts.

I don't need to report any of this... because it will get taxed upon withdrawal... Right ?

The IRS sent me a CP-2000 on my 2019 taxed claiming that basis was not reported on stock sales inside of my IRA and I owe them $3800.

I fix up all they want and the bill came to $3600 and I paid it.... no sooner have I got that worked out... they hit me with a bill for $4800 for my 2021 taxes... . All the trades were inside of my IRA...

I just got done with my 2022 taxes and I reported the amounts on my 1099-div and 1099-B... From my IRA accounts, on my tax return.

What is up with this ? When did we have to start reporting trades inside of my IRA ?

Am I doing something wrong ? What do I have messed up ?

Your broker might be reporting them wrong to the IRS.

 

[grizzly_]

I once had the IRS screw up on an Estimated Payment I sent, which they refunded to me as an overpayment before figuring out they screwed up. I knew it was their mistake so never cashed the check and got a return number from the IRS and sent them their money back. They took so long to process the returned check that I was getting Certified Letters threatening a tax levy plus a bunch in assessed fines before everything finally got worked out a year later.

This was caused entirely by their problem and an errant refund check which I never cashed in the first place.

My advice is to get a CPA, potentially amend your prior year taxes and hopefully you'll come out ahead.

Good luck

 

[westbranch]

1099 divs and 1099 B forms never come from IRAs. Only 1099Rs. You're sure you don't have an after tax brokerage account? You should review all of those statements. I see a lot of tax returns and documents and have never heard of a 1099div being sent incorrectly for an IRA.

 

[Flatrock]

Agreed with what has been said so far.

Does your statement say IRA on it at all? Roth, Traditional, Rollover, etc? If it's an IRA, it definitely should.

 

[fmnjr]

I get statements from my brokerage accounts... 1099-div and 1099-B and the like.... For the last few years, I just pitch them into a file and not worry... because... they are for my IRA accounts. I don't have any non IRA money that gets traded in any accounts.

I don't need to report any of this... because it will get taxed upon withdrawal... Right ?

The IRS sent me a CP-2000 on my 2019 taxed claiming that basis was not reported on stock sales inside of my IRA and I owe them $3800.

I fix up all they want and the bill came to $3600 and I paid it.... no sooner have I got that worked out... they hit me with a bill for $4800 for my 2021 taxes... . All the trades were inside of my IRA...

I just got done with my 2022 taxes and I reported the amounts on my 1099-div and 1099-B... From my IRA accounts, on my tax return.

What is up with this ? When did we have to start reporting trades inside of my IRA ?

Am I doing something wrong ? What do I have messed up ?

Are you 59 or older?

 

[mikieb]

"1099 divs and 1099 B forms never come from IRAs. Only 1099Rs. You're sure you don't have an after tax brokerage account? You should review all of those statements. I see a lot of tax returns and documents and have never heard of a 1099div being sent incorrectly for an IRA."

This is a big help. Now I know what to look for... My brokerage should be sending me a 1099-R. I have to pull on some ears at my brokerage account.

 

[mikieb]

Are you 59 or older?

No, No not yet. close though....

 

[fmnjr]

No, No not yet. close though....

Could be the reason why

 

[antelopedundee]

"1099 divs and 1099 B forms never come from IRAs. Only 1099Rs. You're sure you don't have an after tax brokerage account? You should review all of those statements. I see a lot of tax returns and documents and have never heard of a 1099div being sent incorrectly for an IRA."

This is a big help. Now I know what to look for... My brokerage should be sending me a 1099-R. I have to pull on some ears at my brokerage account.

You should only get a 1099-R if you withdrew money aka redeemed shares. If you made no redemptions from an IRA account then you shouldn't get a 1099-R at all. If you made contributions to an IRA you will get a form 5498. 1099-DIV and 1099-B are typically given out for non-IRA brokerage accounts. You need to ascertain through your brokerage that the accounts in question are IRA and not normal brokerage accounts. Once you have that all sorted out you will need to file amended returns for 2019, 2021 and 2022 to get your money back if the account is indeed an IRA account. Hopefully your explanation will be that the accounts were mis-identified or mischaracterized by your custodian. Why no 1099 from 2020? I read within the last few days that you can now file amended returns online. GOOD LUCK.

 

[antelopedundee]

Any update?

 

[mikieb]

They just sent me a letter today...... It say's that they are experiencing a back log and I can expect a response in 90 days or so.....

I'm sure they will add to the interest penalty for the extra 90 days....

we'll see.

 

[mxracer317]

Call Ben Rucker at www.irstaxrelief.com

 

[Trap]

No way you should be getting those 1099s. What did the brokerage say?

 

[jeff_gibbons]

I’d get a good local CPA immediately. Wouldnt cut another check until I had that firm dig in deep and report back with next steps.

 

[brymoore]

They just sent me a letter today...... It say's that they are experiencing a back log and I can expect a response in 90 days or so.....

I'm sure they will add to the interest penalty for the extra 90 days....

we'll see.

They will

 

[grizzly_]

They just sent me a letter today...... It say's that they are experiencing a back log and I can expect a response in 90 days or so.....

I'm sure they will add to the interest penalty for the extra 90 days....

we'll see.

When I was having issues with them, I got them to put a hold on everything so they'd quit sending me nasty letters. Ultimately it got all reversed and I paid no penalties.

I learned to call in the evening about 5 minutes before they closed to actually get through their phone system.

 

[mikieb]

No way you should be getting those 1099s. What did the brokerage say?

I’d get a good local CPA immediately. Wouldnt cut another check until I had that firm dig in deep and report back with next steps.

My plan is to respond the IRS claims and see what I can work out with and them and just pay it...... because, it's tax season now, and to get a tax professional to look at all this and work it out this time of year would be just impossible. In the end of July or early August I will get all my papers together and in order, and see an enrolled agent or CPA and see if it will be cost effective to recover my money or just leave it alone and move on.

I did not contact my brokerage.... I went on line and it says right on my account that this is an IRA... as it should. The brokerage is E-Trade... and if you know anything about them, they have been bought and sold a few times over the last 15 years. Also, E-trade has no record of my cost basis on file for any trades I may have made in the times prior to when Charles Swab purchased them. So there is that clown show also....

wish me luck.