Wow! Did my broker mess up my 1099s for WHZ and MVO for 2012 far in excess of previous years. I gave up long ago attempting to call the brokerage in an attempt explain their errors and getting them to issue corrected versions. So this year I came up with a new idea.
Instead of writing a lengthy treatise to the IRS on how the correct numbers were arrived at and why they differ from the reported numbers, I'm attaching multiple copies of Page 12 from the tax book, one page for each tranche of purchases. Write the number of shares purchased and the date at the top of each sheet and then pen in the actual dollar figures next to each factor in the chart. I would need to add additional calculations at the bottom of sheets for shares owned for only a portion of the period between 10/16/2012 and 12/31/2012 for MVO and 11/20/2012 to 12/31/2012 for WHZ. I have never received a 1099 with those extra, partial end of year numbers included and so must always correct the 1099. With this system, all my notes to the IRS have to say is, "Refer to attached charts." Good idea or bad? Actually, in the past , I have never had the IRS challenge any of my changes to the 1099s as reported by my broker. Has anyone ever had a problem?
Once one runs through the tax booklets and runs the numbers a few times, it becomes apparent that the the whole process is quite mechanical. As a programmer, if I only had the time, I think that it would be easy to keep the numbers stored in an Access database and then write a program in Visual Basic perhaps that would extract the data, run all the numbers and pop out everything needed for the tax return in about half a second.