US Clearing

[dmj4]

Client received a letter from the IRS that US Clearing had reported almost $5000 in dividends for her child. We contacted US Clearing customer service and they issued another set of 1099's. These dividend payments were not on it. That statement matches the amounts that were included on the return. We are now sure that she did not get this money.
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It seems that US Clearing is willing to send additional 1099's but they are not wanting to do anything to correct the bogus amount they sent to IRS. In the past I have had good results from having the company write a letter saying the dividends were not paid. Other than a corrected 1099DIV, what other ways have some of you been able to use to prove to IRS that there were no dividends paid?

[S T]

1099 INT-DIV corrections

Similar circumstances in the past and receive the CP notice, for unreported income.

We contacted the financial institution and they issued "corrected" 1099 and forwarded to taxpayer accompanied by a letter stating the correction. I don't have knowledge as to whether or not the financial institution actually forwarded to IRS as a corrected form.

We responded to the CP notice and provided a copy of the corrected documents and that seemed to clear the issue. I will usually also furnish a copy of the Sched B or D indicating what we reported and show that it matches the "correct" 1099 statement.

Sandy

[Black Bart]

Bad 1099's

I haven't ever found a really good way to take care of this because the solution is always in the hands of another party rather than yours. I have been known to go so far as to send the offending party the forms and instructions to fix it with. Sometimes that works, sometimes it doesn't. Unfortunately, in many cases, the clerks or whoever handles it don't have the smarts to fill them out correctly (assuming they are so-inclined). In the case of government workers, it's frequently difficult to find someone who gives a flip whether it gets done or not.

I sort of favor dmj4's method of getting the company to write a letter about it. That way it doesn't seem like IRS could misinterpret it too much.

Try everything mentioned, I suppose. Using the shotgun approach, one of the attempts may bear fruit.

P.S. It seems like there was a discussion on the other board about this early sometime last year and Snag and the boys (A&B) had some good input on it. It that right, guys? Snag?

[dmj4]

a little more

I may have made it sound like we have found someone with US Clearing willing to send a "corrected" 1099. All they have done is send a copy of the 1099DIV we already had which actually reports only OID. The account number on the CP letter is different so IRS won't accept that as proof of no dividends. The customer service people apparently can't see 1099's from 2003 while they are helping you, so they just order one for you. The amount reported to the IRS is not actually on the 1099 at all, it says "No reportable 2003 Form 1099-DIV income". However, US Clearing reported $5000 in dividends to IRS. The company US Clearing was reporting it for is out of business, now. We attempted contact with that company and the ex-broker.

[Armando Beaujolais]

I haven't ever found a really good way to take care of this because the solution is always in the hands of another party rather than yours. I have been known to go so far as to send the offending party the forms and instructions to fix it with.

I love it! Especially with companies that are perfectly capable of correcting the situation but don't want to bother with it, a little annoyance can go a long way. "Here, let me draw you a picture." That will at least get them to pay attention.

Twice in my life I've resolved problems with companies by writing letters in crayon. One was a health insurance company for an employer where I no longer worked. Shortly after I left the company, their insurance company sent me a bill for my share of elective coverage. I sent them a letter saying I no longer worked for the company. They sent me another letter wanting an update of my personal information. I sent them another letter saying I wasn't on their rolls any more. I called them. Everything was worked out and was fine. Then I get another letter from some other department. Enough already. I wrote them in crayon saying I don't work for the company any more and I'm not a customer and please take me off your mailing list. That was the last I ever heard from them.

If you have a corrected 1099, that should be all you need. Send it in with a statement, and at the very least that puts the ball in their court. I don't see an extra statement from the issuing company as being necessary.

[Jesse]

Still laughing!!!!

I've resolved problems with companies by writing letters in crayon.

That is the best!!!!!

[WhiteOleander]

Twice in my life I've resolved problems with companies by writing letters in crayon.

HaHA. I love that!!! I laughed out loud. I may use that appraoch with some of my clients too.

[dmj4]

No corrected 1099

I don't have a corrected 1099. They just sent another copy of the one we already had.

I may try the crayon thing just to cheer myself up! I will definitely remember it for the future. Thanks for the laugh.

[Bees Knees]

My wife did one by using different highlighter colors, about 10 or so (looked like the new array of QF color coded books). I think it was for a 941c with the W-2c and all that good stuff. Anyway, after a few letters from IRS back and forth, the color coding seemed to be what got them off her back.

[ED SMITH]

It must have gotten them to actually read it instead of leaving it at the bottom of the in box.

[Kurly]

Changes

Had a client whaose mother died in a hospital. The hospital was billing his dead mother numerous times. We finally sent them a change of address for her, it was the address and headstone location of her body. no more bills.

k