Question

Supplemental Tax Statement for CY 2019 shows trades occurring in CY 2020

Forum|Forum|6 years ago
May 15, 2020
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I received a supplemental tax statement from a Widely Held Fixed Investment Trust on 3/17/2020 for my CY 2019 taxes. The supplemental tax statement was imported into TurboTax and my taxes taxes were recomputed. However, the TurboTax review identified several errors, as the supplemental tax statement contained several transactions that occurred on 1/27/2020. The dollar amounts are very small, with very little impact on the taxes owed.

What should I do? Just go ahead and file the return as is, with the errors, assuming that TurboTax will let me file with errors? The supplemental tax statement contains more than 50 pages of information (hundreds of transactions), so I do not want to enter the information by hand, omitting or changing the 2020 dates. I'm also contacting my M-L broker to se what he advises.

hbl3973

Employee

Not knowing the precise details, it may well be that the supplemental tax statement is correct. The IRS notes on page 62 of publication 17 (https://www.irs.gov/pub/irs-pdf/p17.pdf) that

"If a mutual fund (or other regulated investment company) or real estate investment trust (REIT) declares a dividend (including any exempt-interest dividend or capital gain distribution) in October, November, or December, payable to shareholders of record on a date in one of those months but actually pays the dividend during January of the next calendar year, you are considered to have received the dividend on December 31. You report the dividend in the year it was declared."