Seth Breidbart wrote:

- quote -

One common case is for a REIT. The distributions are not
qualified dividends. So the broker will probably report them
as non-qualified dividends on the January 30 1099. But on
Jan 30, the REIT says that some of that money was capital
gain, some return of capital, and some was Unrecaptured
Section 1250 Gain. So there is an amended 1099. Using the
new numbers will mean less tax, altho the effort to file an
amended return may be more than the tax savings are worth.

Ideally the REIT will get that info to the broker earlier
than statute requires, but that does not always happen.

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sethb[at]panix.com (Seth Breidbart) writes:

- quote -

Its own accounting says not a word about the *character* of the
distributions it received from the corps it invests in.

- quote -

But it does issue a corrected 1099-DIV to the fund saying
"oops, some of that was actually a return-of-capital
distribution, not a dividend" or "oops, some of that was a
non-qualified dividend, not a qualified dividend" or "oops,
turns out we paid over more foreign income tax than we
thought", etc.

And then the fund has to issue corrected 1099-DIVs to its
shareholders reflecting the new info it got from the corps
it invests in.

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

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Rich Carreiro <rlcarr[at]animato.arlington.ma.us> wrote:
- quote -

Why does the fund need paperwork from the companies
(assuming it invests in stock and bonds, not limited
partnerships)? It should know what dividends it received,
capital gains it made, etc. from its own accounting.

When a company says "Oops, we goofed, we didn't actually make a profit
last year" it doesn't get to claw back its dividend payments.

Seth

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"spinoza" <spinoza_43221[at]yahoo.com> wrote:

- quote -

Actually, there is no deadline for corrected 1099s, etc.
The problem you describe arises because both the mutual fund
and the corporations it invests in have the same deadling.
The mutual fund must send you its 1099 by January 31. The
problem arises because the companies whose stocks are in the
funds portfolio must also send out their 1099s by January
31. Thus, the fund will not have information, such as you
describe, before it must issue your 1099.

Lanny K. Williams, CPA
Nawarat, Williams & Co., Ltd.
Income Tax Services for Expatriate Americans

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"Ira Smilovitz" <iras1[at]aol.com> wrote:
- quote -

Does the state take back the discount if you later file an
amended return? If not, you should still get the discount
if you initially filed early and then correct it when you
receive the corrected 1099.

I noticed that several of my funds sent out corrected 1099's
this year. Was there a late-breaking tax change that caused
this?

--
Barry Margolin, barmar[at]alum.mit.edu
Arlington, MA
*** PLEASE don't copy me on replies, I'll read them in the group ***

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"spinoza" <spinoza_43221[at]yahoo.com> wrote:

- quote -

There is no deadline. No entity that provides you with
information relevant to your tax return is under any
obligation to help you obtain an early filing discount.

Ira Smilovitz

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"spinoza" <spinoza_43221[at]yahoo.com> writes:

- quote -

You're asking the wrong question. You need to ask what, if
any, deadline there is for the corporations the fund invests
in to put out corrections. *That's* almost always the
source of the *fund's* corrections. All the fund has to go
on is what it gets from the companies it invests in.

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

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Mutual Funds in general seem to have to issue information by
January 31st, but I have some that have issued corrections.
One in particular stated that 9 percent of the interest
earned was exempt in the state I live in.

Is there any deadline for when these mutual funds have to
put out corrections. The state I live in offers a discount
if you file quickly and this correction was sent to me after
the deadline for the discount.

Thanks in advance,

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