Holy COW !!! IRS trouble....

[mikieb]

Call Ben Rucker at www.irstaxrelief.com

I don't think I am at the Ben Rucker level of crisis just yet.... If I can keep this whole mess for under 5 grand.... it may be more cost effective to just play along and pay it.... and get with my brokerage to not let another 1099 get produced for my IRA account.
Up until now, I have not had the added cost of hiring a professional... and I won't do that until August or so and see where things go from that.

 

[SAJ-99]

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....

The broker is where you should start. The IRS is getting the information from them. And E*trade is owned by Morgan Stanley, not Schwab. So make sure you call the right place. Otherwise it would be like ordering a Big Mac at a Wendy’s.
Good luck.

 

[Jwill]

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.

I have an E*trade acct and have always had good customer service when calling them up.

 

[antelopedundee]

If you live in a larger city the IRS should have an office where you can schedule a visit. Schwab should have a local office as well.

If not I would contact my Congressional representative and have them cut some red tape.

Or you can send copies of the brokerage statements and 1099s and CP notices and a letter of explanation by certified mail to the IRS office in Ogden, Utah and see if they can straighten it out because you shouldn't be getting a 1099-B for an IRA account. Once they acknowledge that they may require you to file an amended return. Also possible you could deal with a specific person there.

GOOD LUCK

 

[antelopedundee]

The broker is where you should start. The IRS is getting the information from them. And E*trade is owned by Morgan Stanley, not Schwab. So make sure you call the right place. Otherwise it would be like ordering a Big Mac at a Wendy’s.
Good luck.

To add on, I believe that TDAmeritrade is the one getting swallowed up by Schwab. If one has a TD account and it's not yet transferred over I'd get on the horn with them like pronto.

 

[Trap]

I don't think I am at the Ben Rucker level of crisis just yet.... If I can keep this whole mess for under 5 grand.... it may be more cost effective to just play along and pay it.... and get with my brokerage to not let another 1099 get produced for my IRA account.
Up until now, I have not had the added cost of hiring a professional... and I won't do that until August or so and see where things go from that.

You are wise to wait till after tax season to find a tax professional. I would think a really good cpa would be a good return on your investment. Even if it costs a few thousand (which I doubt) not paying 5k that you don’t owe is over 100 percent return on your investment in a professional. I would be all over the brokerage. It really sounds like that is where the error occurred. If it’s the company error they should correct all erroneous 1099’s. If you don’t actually have everything in an IRA at least you will know and avoid future IRS problems, sounds like you are on it but I would get with the broker asap. That’s exactly where the problem originated.

 

[Big Fin]

Is the form in question a Form 1099-R or a Form 1099-B?

Either can come from a brokerage firm, but they have very different tax reporting requirements?

If it is a Form 1099-R, the question becomes where or not you did a roll-over, take an early distribution, correct an excess contribution from another year, etc.

If your account says "IRA" or "ROTH IRA," you should not get a Form 1099-B.

I have multiple E-Trade accounts and I've never had an issue with them.

 

[mikieb]

Is the form in question a Form 1099-R or a Form 1099-B?

Either can come from a brokerage firm, but they have very different tax reporting requirements?

If it is a Form 1099-R, the question becomes where or not you did a roll-over, take an early distribution, correct an excess contribution from another year, etc.

If your account says "IRA" or "ROTH IRA," you should not get a Form 1099-B.

I have multiple E-Trade accounts and I've never had an issue with them.

Yes... yes.... that is the thing.... I didn't get either one of those.... I got a 1099-DIV, because stocks I have in my IRA paid dividends like they should... that is why I bought them... And now... dividend gains in my IRA are being reported and have been for the last few years... I just tossed the 1099-div in the file thinking, because it is in an IRA I didn't need to report it... now... now it has snowballed into this....

So... I have played the tax game for a number of years... I have filed a profit or loss from Farming for the last 20 years with a few section 179's thrown in for pick ups and tractors and the like... so If I loose 3-4 grand after all is said and done, I am still in the black with the IRS.

It's just that... they hit me with this just as tax season starts, so all the professionals are running night and day and they ( the IRS) are moving at IRS speed. I bet at the end of July, I will have this all put together in an easy to comprehend format for a professional to look and and tell me which direction to go.

I really have leaned a lot going thru this.... so much so, that maybe next year... you will find me part time, in a booth... in front of your local Walmart, working for Jackson Hewitt to off set nonresident tag fees.... Huh ??? see ? Ya gotta live on the sunny side of the street !

 

[MTGomer]

I don’t know the answer but I used a CPA this year. Worth every cent.

 

[Big Fin]

File amended returns (From 1040X). Report the amount on Schedule B as Dividends. Then show an equal negative amount on Schedule B titled "Nominee Dividends - IRA #(insert number here).

The net amount is zero, but the IRS sees that you reported the amount. Problem solved.

A lot of times we get a 1099-DIV or 1099-INT in the name of the wrong person/entity. You report it to avoid the matching notices you received. You back it out so you aren't paying taxes on something you shouldn't.

Don't ignore things like a Form 1099-DIV. IRS matches those to your tax return. Failure to report or address gets you a "love letter."

You'd not get a 1099-DIV from an account properly titled as an IRA. Get that account titling fixed.

 

[antelopedundee]

File amended returns (From 1040X). Report the amount on Schedule B as Dividends. Then show an equal negative amount on Schedule B titled "Nominee Dividends - IRA #(insert number here).

The net amount is zero, but the IRS sees that you reported the amount. Problem solved.

A lot of times we get a 1099-DIV or 1099-INT in the name of the wrong person/entity. You report it to avoid the matching notices you received. You back it out so you aren't paying taxes on something you shouldn't.

Don't ignore things like a Form 1099-DIV. IRS matches those to your tax return. Failure to report or address gets you a "love letter."

You'd not get a 1099-DIV from an account properly titled as an IRA. Get that account titling fixed.

I understand that the IRS doesn't get around to matching up 1099s with returns until summer. I think it was 2020 when I first used Turbo and forgot to include a 1099-R. It then carried over to the state but so far neither has caught the error. I was advised not to file an amended return unless the taxing agency caught the error.

He also said in his first post that he was getting a 1099-B and being taxed on profits from trades. Must something new for his 2022 tax year I would assume. What would be the explanation for a Nominee Dividend?

BTW do you or anyone else know how to adopt out of the 6 digit PIN program?

 

[warmer]

The $8600 you have already paid in would go a long way in paying for the CPA. Just sayin.

 

[antelopedundee]

Yes... yes.... that is the thing.... I didn't get either one of those.... I got a 1099-DIV, because stocks I have in my IRA paid dividends like they should... that is why I bought them... And now... dividend gains in my IRA are being reported and have been for the last few years... I just tossed the 1099-div in the file thinking, because it is in an IRA I didn't need to report it... now... now it has snowballed into this....

So... I have played the tax game for a number of years... I have filed a profit or loss from Farming for the last 20 years with a few section 179's thrown in for pick ups and tractors and the like... so If I loose 3-4 grand after all is said and done, I am still in the black with the IRS.

It's just that... they hit me with this just as tax season starts, so all the professionals are running night and day and they ( the IRS) are moving at IRS speed. I bet at the end of July, I will have this all put together in an easy to comprehend format for a professional to look and and tell me which direction to go.

I really have leaned a lot going thru this.... so much so, that maybe next year... you will find me part time, in a booth... in front of your local Walmart, working for Jackson Hewitt to off set nonresident tag fees.... Huh ??? see ? Ya gotta live on the sunny side of the street !

Do you do your own taxes?

 

[antelopedundee]

The $8600 you have already paid in would go a long way in paying for the CPA. Just sayin.

So would the interest that the IRS owes him on the money he shouldn't have paid in.

 

[antelopedundee]

I'd take Randy's advice for those times you got a 1099-DIV only, but maybe a CPA for when you got a 1099-B and a 1099-DIV. Hopefully you have all of your old returns and statements form when this started.

ETA. AFAIK amended returns are processed by an individual and not by a computer. I think it would be helpful to your case to attach a letter of explanation from your brokerage house for why you are getting these 1099s when you shouldn't be. Be prepared for a 6 month wait for the returns to be processed.
Had you contacted your brokerage when the 1099 was issued [about mid-February] you likely would have gotten a revised one and you wouldn't be in this mess for 2022.