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Linn Co, LLC Message Board

  • crashoverride734 crashoverride734 Feb 15, 2014 5:55 PM Flag

    Tax Discrepency for LNCO

    Anyone else have this problem?
    Ameritrade just released the consolidation form 1099 for 2013. On it, it shows every distribution I got this year from LNCO as qualified dividends. I thought the company released a statement stating that the dividends would be "non dividend distributions" which are ROC. Big difference.

    Can anyone help? I go to a tax accountant to do my taxes, so I am thinking to print the letter off from LINN Energy's website and maybe I will send a note in with the tax papers suggesting there's a mistake on the 1099 from Ameritrade.

    Does anyone know if the dividends were changed from ROC back to qualified dividends?

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • I believe LINE is roc. LNCO is regular dividends.

    • A brokerage doesn't unilaterally initiate a Box 3 Non-dividend distribution (which is non-taxable ROC and used to be termed "Non-taxable distributions"). It simply responds to the information provided them by a given company. Such information is not infrequently provided later than a brokerage sends out its 1099. So a correction ensues. It's a real annoyance, especially when you file in mid-April because you anticipated corrections and then receive one in May and have to file a 1040X, changing umpteen numbers.

      • 1 Reply to ronharv
      • It could be more complicated. Case in point, in 2013 I sold a long term holding, symbol IGR, that the closed end fund press release reported distributions as 65% nondividend distributions; but, from the broker 1099, even the 'corrected' one always reported as 'ordinary' income. Now I read my 2013 1099 from the broker that has the cost basis MINUS the proper 'return of capital' (nondividend distribution). So the $%#@* broker had the right numbers all along, but didn't report it to the IRS properly! Arggggggggg. Now I'm going to the broker's office and 'spit venom', I'm not just writing a nice quiet letter. It seems the brokerage has a computer glitch. Name of brokerage withheld pending outcome.

    • Wait. You will eventually get a corrected 1099 from TD Ameritrade. It happens every year, especially for new MLPs/REITs/BDCs, etc. LNCO is big enough that TD will figure out the problem by themselves, but if you want to help, call them and tell them the problem.

      Most brokers are on a 2-week schedule for their corrected 1099s. Last year, I received as many as 4 corrected 1099s from Schwab on 1 account. Each time, they fixed some of the problems, but not all.

    • TD Ameritrade has sent me corrections as late as the first week in April. And because filing changes (fed and state) can be almost as much of a hassle as doing the taxes in the first place, I now wait to file just a few days before the deadline. However, I do my taxes in pencil well before that and then just copy them in ink. That way it's easy to make changes based on corrections, which, because of such matters as ROC, capital distributions, the ever-changing Schedule Ds, and qualified dividends, have become a regular yearly event. Also, there can be corrections to the corrections.

    • On the link you provided it says I think this is what you want it to say.

      Sentiment: Buy

    • outthink Feb 17, 2014 9:01 PM Flag

      You should be addressing this issue with TD Ameritrade, not here. No one's opinion here carries any weight with the TD Ameritrade or the IRS. All you did by coming here was delay getting a response from TD Ameritrade.

      • 1 Reply to outthink
      • This message board is an excellent place to post issues such as tax treatment discrepancy to discover the solution. For example, my brokerage reaffirmed they haven't been told from LNCO it should be a return of capital. They wrote that as soon as they hear otherwise they will issue a corrected 1099. So I suggest we contact LNCO IR department and mention the specific brokerage to see what's going on.

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