Question

1099-B Errors: Can I Correct Them Myself and Provide Evidence?

Forum|Forum|3 years ago
February 14, 2023
2 replies
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I recently received my 1099-B from my brokerage company, but I've noticed significant errors in the reporting of covered and uncovered transactions. Specifically, some transactions that should have been marked as covered were instead marked as uncovered, which could have a significant impact on my tax liability. I've contacted the brokerage company, but I'm not sure if I'll be able to get a corrected 1099 in time for tax season. Is it possible for me to correct these errors myself when filing my taxes and provide evidence to support the corrections?

Not A Product Question

T

TomK2023

You should really wait for the corrected 1099-B. Any time a company issues you a 1099, it's required to file a copy with the IRS as well. The IRS then checks your tax return against the 1099s it has in its system to make sure everything matches up. If it doesn't, there's a good chance your return will be delayed as the IRS waits for more information.

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M

Mike9241

do you understand what covered and uncovered mean - simply whether cost basis is reorted to the iRS.

there can br reasons why you think a security should be covered but is reported as not covered. one of the most common is investments inMaster Limited Partnerships or Publicly Traded Partnerships. - always reported as uncovered.

A covered security is defined as:

Any stock in a corporation, including American Depositary Receipts (ADRs), acquired on or after Jan. 1, 2011
Mutual funds acquired on or after January 1, 2012
Stocks or ADRs acquired through a dividend reinvestment plan (DRIP) on or after Jan. 1, 2012
Less complex bonds, derivatives, and options purchased on or after Jan. 1, 2014
More complex bonds, derivatives, and options purchased on or after Jan. 1, 20163

fanfare

Employee

changing the Box category from A to B or vice versa is not going to help you and can only result in the IRS computers kicking out your tax return for review.

If the cost basis is wrong, you can edit the transaction and enter the correct basis. whatever the box assigned by your broker..