Vanguard Corrected 1099

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boglephreak
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Vanguard Corrected 1099

Post by boglephreak » Tue Mar 21, 2017 11:40 pm

I am very confused by what I have received from Vanguard. I sold int'l back in November at a loss of about $2000 to tax loss harvest. My original 1099 showed it as a loss of about that amount, and no wash. I just received a corrected 1099, which shows a loss of only about $500, and a wash of about $250 (I assume because i bought, but did not sell shares within 30 days before the tax loss harvesting). however, I dont understand how the $2000 went to $500. Based on advice from this forum, i use specid to track cost basis and have been doing so from the very beginning; i only sold shares that were at a loss. in order to figure out why it went to $500, i am looking at the "realized gains and losses" tab in vanguard. it is showing my cost basis as "first in, first out." also, in my account overview, it is showing long-term capital gains for my purchase in october 2016. i am very confused.

anyone know whats happening (or what info i can provide to help understand)?

is this the kind of thing vanguard's customer service is good at explaining? its the first time i tax loss harvested, so i dont know whats happening.

thanks.

edit1: in the realized gains and losses tab, it says "The loss of $197.07 has been disallowed due to wash sale activity in this security. The disallowed amount has been added to the cost basis of the shares that caused each wash sale to occur."

TIAX
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Re: Vanguard Corrected 1099

Post by TIAX » Tue Mar 21, 2017 11:59 pm

This has happened twice to me now. Apparently, Vanguard makes this mistake on a regular basis (issues an incorrect "corrected" 1099-B, changing the cost basis method from SpecID to FIFO for no reason). You'll need to call and escalate this up the chain. Vanguard will need to issue another corrected 1099-B (that would be the same as the first 1099-B). I can't imagine how many people just assume the "corrected" 1099-B is correct and just pay the additional tax.

Topic Author
boglephreak
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Re: Vanguard Corrected 1099

Post by boglephreak » Wed Mar 22, 2017 12:05 am

thanks tiax.

just found this post as well, appears to be same/similar issue. i have sent a secure message, i guess i will call to get it escalated as well.

viewtopic.php?t=213035

TIAX
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Joined: Sat Jan 11, 2014 12:19 pm

Re: Vanguard Corrected 1099

Post by TIAX » Wed Mar 22, 2017 12:22 am

boglephreak wrote:thanks tiax.

just found this post as well, appears to be same/similar issue. i have sent a secure message, i guess i will call to get it escalated as well.

viewtopic.php?t=213035
Try to have someone from Vanguard's "Executive Response Team" handle this issue.

jebmke
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Re: Vanguard Corrected 1099

Post by jebmke » Wed Mar 22, 2017 8:44 am

You can adjust everything on Form8949 but I think it makes more sense to pursue VG for a fix. You have plenty of time.
When you discover that you are riding a dead horse, the best strategy is to dismount.

Topic Author
boglephreak
Posts: 441
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Re: Vanguard Corrected 1099

Post by boglephreak » Mon Apr 03, 2017 10:03 pm

so, Vanguard fixed it by switching from average (or whatever the default is) to specid, and now its all good. funny enough, the original form was correct, but the "corrected form" was wrong, and the corrected, corrected form is the original form..... sigh....

TIAX
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Re: Vanguard Corrected 1099

Post by TIAX » Mon Apr 03, 2017 11:17 pm

boglephreak wrote:so, Vanguard fixed it by switching from average (or whatever the default is) to specid, and now its all good. funny enough, the original form was correct, but the "corrected form" was wrong, and the corrected, corrected form is the original form..... sigh....
Keep in mind that the IRS received both corrected 1099-Bs. Hope that doesn't trigger anything.

Topic Author
boglephreak
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Re: Vanguard Corrected 1099

Post by boglephreak » Tue Apr 04, 2017 12:34 am

TIAX wrote:
boglephreak wrote:so, Vanguard fixed it by switching from average (or whatever the default is) to specid, and now its all good. funny enough, the original form was correct, but the "corrected form" was wrong, and the corrected, corrected form is the original form..... sigh....
Keep in mind that the IRS received both corrected 1099-Bs. Hope that doesn't trigger anything.
is there something i can/should do about that? or just file the taxes like normal. 2/3 of the forms are correct, lol.

TIAX
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Joined: Sat Jan 11, 2014 12:19 pm

Re: Vanguard Corrected 1099

Post by TIAX » Tue Apr 04, 2017 11:39 pm

boglephreak wrote:
TIAX wrote:
boglephreak wrote:so, Vanguard fixed it by switching from average (or whatever the default is) to specid, and now its all good. funny enough, the original form was correct, but the "corrected form" was wrong, and the corrected, corrected form is the original form..... sigh....
Keep in mind that the IRS received both corrected 1099-Bs. Hope that doesn't trigger anything.
is there something i can/should do about that? or just file the taxes like normal. 2/3 of the forms are correct, lol.
I would just file the taxes like normal. Make sure you save any correspondence with Vanguard that may be relevant.

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