Question: Sharebuilder accounts and corrected 1099-div
I'm curious to know if other people here have a ShareBuilder account and owned NCT in it prior to the spinoff.
I first called ShareBuilder about a month ago to ask them to correct my 1099-div. I had to call them more than once to get the ball rolling. (I walked one of the "specialists" through my 1099-div and then we looked at NCT's Web site to compare it to their "tax treatment of 2013 dividends". My first 1099-div was COMPLETELY missing the NRZ dividend.)
Long story short: It took them three weeks!! I suspect that my 1099-div was not the only one that was affected. Hence the question: Do any of you own NCT (pre- and post spinoff) through Sharebuilder? If so, can you let me know if your initial 1099-div had the NRZ spinoff? (It should show up as a dividend: about $2.50 per share as ordinary dividend and about $4.00 per share as non-dividend distribution.) Finally, if your initial 1099-div was incorrect, did you get an email last Friday evening that a corrected 1099-div was available? (If it took them thrre weeks to correct mine, it's a good bet that they checked every other account... Otherwise, they'd be putting themself at the risk of legal trouble.)
No replies from any Sharebuilder account owner? Surely there are several of you out there. Was your initial 1099-div correct? If not, did they send you a corrected one?
FYI: On my initial 1099-div, the NRZ spinoff was not there. On the corrected one, it showed $10,000 taxable dividend plus $16,000 non-dividend distribution -- which lowered my cost basis by $4 per share. These are not small and the IRS will catch this. I did not want to play games, so I puched Sharebuilder pretty ahrd to get mine corrected before I filed. I could have let the initial one stand and file; Sharebuilder did not catch the error -- I did. The problem with that is the risk of an audit, not to mention penalties. Sharebuilder should have corrected yours too (you are welcome), but if not -- be careful... The IRS's computer system will catch something this big. (Trust me, the database query to catch this is simple.)
If you get an incorrect Form 1099, you are not required to follow it. Just show the original numbers and an adjustment to get to the correct number with an explanation. You can do this on an attached statment or right there on Sch. B.
Yes, I initially got an incorrect 1099-div. I wanted that fixed and it took them three weeks; I had to call more than once to explain why it was wrong.. then I had to wait... I filed only after it was corrected -- and obviously that is the best way to do it.
I am hoping someone else who has ShareBuilder lets me know if their 1099-div was correct or if they got a corrected 1099-div. Sharebuilder knows that the NCT dividend was wrong on mine, and it should be a simple database query to identify all others that were incorrect. At that point, they have a legal responsibility to correct all of them -- which may explain why it took three weeks.
Surely other people here have Sharebuilder and owned NCT before and after the NRZ spinoff.
Wayne: I don't have Sharebuilder but I had one large account send a corrected 1099 on 3/15 (orignial 1099 in mid Feb was wrong. I had another account where the original 1099 was wrong but I used the first accounts figures (which jived with the companies figures) when I had my return prepared. The second account's corrected 1099 came about a week ago, after I had e-filed my return. I know the numbers are right so I'm not going to file an amended return.
P.S. I got my refund :~) today 4 days after filing. The gov't must be flush with cash.