your experience with Vanguard re: revised 1099's

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capran
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Joined: Thu Feb 18, 2016 10:45 am

your experience with Vanguard re: revised 1099's

Post by capran »

I don't mind saying, I am more than a bit ticked off! I did my taxes and because there were quite a few new to me forms (passive activity, Captial Gains, schedule E etc) I completed everything but hired a CPA ($250) to review everything. He recommended a few changes (like being able to fully deduct a passive loss since I sold the holding, and I just completed the changes. Then in todays mail I get a revised 1099. Apparently Vanguard did not calculate the Capital Gain on one of my stock sales correctly. Does that happen often with Vanguard? Even though it only adds $18 of capital gains, now I must redo all those wonderful forms, including CG worksheets. Yes, I know- one more reason to get turbo tax! (although my brother in law who had the exact same passive loss, TT did not plug in the full loss even though he too had sold the exact same holding). The CPA insists the full loss is allowed because "passive activity was disposed of).
Alan S.
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Re: your experience with Vanguard re: revised 1099's

Post by Alan S. »

For $18 of cap gains (tax probably $3), just let the IRS send you a tax due notice if they choose to. Spare yourself a major hassle and expense.
Topic Author
capran
Posts: 123
Joined: Thu Feb 18, 2016 10:45 am

Re: your experience with Vanguard re: revised 1099's

Post by capran »

Thanks for that idea. It hadn't occurred to me. I wonder if my OCD nature would let me. I've spent several hours printing up new forms and finished several. Just amazes me they can do that with so few days left of the regular filing period, especially since the security that was revised was sold 7 months ago. (yes, I know this year is an extension). But if the only consequence would be them sending me a tax due, I could handle that. I am always afraid of getting audited, as we typically travel 5 months of the year and am afraid of a major interruption due to a stupid audit.
sixty40
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Re: your experience with Vanguard re: revised 1099's

Post by sixty40 »

If you are due a refund, then I would not do anything, assuming refund is more than the added cap gains tax. If you owe the IRS, you can just pay a few dollars more to cover the added cap gains tax, that is what I would do and then you can rest assured that even if you do get audited, you did not intend to cheat the Uncle Sam.

I have received corrected 1099s before, but never this late, typically March at the latest, so I usually file a few days before the due date just in case.
RetiredAL
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Re: your experience with Vanguard re: revised 1099's

Post by RetiredAL »

Alan S. wrote: Sat Apr 11, 2020 6:53 pm For $18 of cap gains (tax probably $3), just let the IRS send you a tax due notice if they choose to. Spare yourself a major hassle and expense.
In the 1099 stuff from Wells Fargo Advisors this year was the statement 'due to IRS changes, no 1099 corrections will be sent unless the change in any box is $100 or more'.

I take that to mean that the IRS has no interest in small 1099 corrections and has directed the 1099 issuers so forth.
Alan S.
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Joined: Mon May 16, 2011 6:07 pm
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Re: your experience with Vanguard re: revised 1099's

Post by Alan S. »

RetiredAL wrote: Sun Apr 12, 2020 10:35 am
Alan S. wrote: Sat Apr 11, 2020 6:53 pm For $18 of cap gains (tax probably $3), just let the IRS send you a tax due notice if they choose to. Spare yourself a major hassle and expense.
In the 1099 stuff from Wells Fargo Advisors this year was the statement 'due to IRS changes, no 1099 corrections will be sent unless the change in any box is $100 or more'.

I take that to mean that the IRS has no interest in small 1099 corrections and has directed the 1099 issuers so forth.
Thanks for this update. Makes total sense, and perhaps worth continuing after the pandemic ends. 1040X forms are labor intensive to handle.
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