Vanguard Brokerage Corrected 1099-DIV

[Z9yajAg]

I just received in the mail a Corrected 1099-DIV form from Vanguard. The numbers are completely different from the original 1099-DIV.

There was no letter of explanation, just the form. I almost just tossed it into my 2015 tax file folder without looking at it.

I've already filed my tax return, weeks ago.

I called Vanguard on the phone. The CSR says many people with Vanguard Brokerage (something about with dividends not re-invested, mumble, mumble) got an incorrect 1099-DIV.

I'm going to have to file an amended 2015 return to unscrew this. How hard is this for Vanguard to get right? I'm furious. An enormous hassle. I guess it's my own fault for not checking every last number on every last form that someone sends me. I've gotten so many garbage 1099-Bs over the years that I never trust them, but how do you screw up a 1099-DIV? I guess I'm the idiot for using their original 1099-DIV numbers in the first place.

[Toons]

I have learned like you have learned.
It took me quite a few years though.
I now wait patiently as brokerages do send out corrected 1099s.
As a matter of fact I received email notification of Corrected 1099 from Wells Fargo this morning.
Corrected 1099's are not unusual at all .
No need to get upset.
File the amended and move on

[livesoft]

I'm going to have to file an amended 2015 return to unscrew this. How hard is this for Vanguard to get right? I'm furious. An enormous hassle. I guess it's my own fault for not checking every last number on every last form that someone sends me. I've gotten so many garbage 1099-Bs over the years that I never trust them, but how do you screw up a 1099-DIV? I guess I'm the idiot for using their original 1099-DIV numbers in the first place.

It is very hard for all brokers to get this right. Vanguard is no exception. There are many threads each year about corrected 1099s.

Generally, folks who get a corrected 1099 stop filing early in the subsequent years. Some of us even wait to file in October because there is no benefit to filing earlier. Yes, I know some folks write about identity theft and some folks write about getting a refund. I know how to get a refund without filing a tax return. I thought everybody knew how to do that.

Oh, don't file an amended return right away. You actually might get a corrected 1099 for the corrected 1099.

[Bill M]

Oh, don't file an amended return right away. You actually might get a corrected 1099 for the corrected 1099.

This point raises two questions:
1. Is there something like the "de minimis" rule about changes that are so small that the IRS doesn't want to hear about it?
2. Is there some rule about how soon the amended return should/must be filed? Is six months too quick or too slow?

[masteraleph]

Also got that corrected one- but got it online, and it showed up a few hours before I was going to file (!)

[jebmke]

If you expect a refund with the 1040X, I'd wait a while to file it. Of course, if you owe a lot, you probably want to file by April 15.

I normally don't file until August or September -- by then the forms will likely be final and the software should be up to date.

A friend of mine just got a revised VG consolidated so it seems like they might be revising statements a lot this year.

[in_reality]

How hard is this for Vanguard to get right? I'm furious. An enormous hassle.

Two years in a row got them from Schwab. This year Schwab changed their release date to avoid it. Fingers crossed for no more changes.

TurboTax makes it pretty trivial to do an amended form.

[Doc]

I called Vanguard on the phone. The CSR says many people with Vanguard Brokerage (something about with dividends not re-invested, mumble, mumble) got an incorrect 1099-DIV.

That is definitely the reason. The fund which is not VBS "issues" the dividend on December 31 but the money doesn't get to your brokerage account until the next business day i.e. the next year. This is a typical industry standard settlement date "issue". But most brokers are aware of it and don't issue their 1099's until these things all "catchup".

See livesoft's post.

For what it's worth I haven't filed and won't until April 18th and intend to ignore the correction in any case. If the amount is large and if the IRS catches it they will just send you a bill.

[dcdowden]

We also received Corrected 1099-DIV's from Vanguard Brokerage. When I looked at the details, it shows that two funds made distributions on Jan 4, 2016. That confused me, so I called Vanguard to ask why a 2016 distribution affects my 2015 taxes. After the rep checked with their tax experts, he told me that those funds declared the distributions in 2015 and that's why they report them on the 2015 1099-DIV. He didn't have any explanation as to why the initial 1099-DIV had missed those requiring a Correction about a week later.
Doug

[livesoft]

I think a possible problem is that Vanguard does not pay their IT folks enough to let them have extra money to invest. Hence, the IT folks are clueless about real-world 1099s and investing in taxable accounts.

[clip651]

If I've noticed an error on a 1099-DIV, do I need to let someone at Vanguard know, or should I just wait for a corrected form to come? (Haven't filed taxes yet, as I was expecting late brokerage forms and/or corrected ones, based on the threads here last year.) In this particular case, one fund's capital gain distribution is showing up as a dividend instead, FWIW.

[dumbbunny]

Same thing happened to me last year and I had to file an amended tax form. The amended form (reported an extra $55 in dividends) only affected my state refund. This year I made sure to wait.

[Doc]

If I've noticed an error on a 1099-DIV, do I need to let someone at Vanguard know, or should I just wait for a corrected form to come? (Haven't filed taxes yet, as I was expecting late brokerage forms and/or corrected ones, based on the threads here last year.) In this particular case, one fund's capital gain distribution is showing up as a dividend instead, FWIW.

If it is a short term distribution it goes on schedule B - dividends. If it is a long term distribution it goes on Schedule D - capital gains. That may be what you are seeing.

[clip651]

If I've noticed an error on a 1099-DIV, do I need to let someone at Vanguard know, or should I just wait for a corrected form to come? (Haven't filed taxes yet, as I was expecting late brokerage forms and/or corrected ones, based on the threads here last year.) In this particular case, one fund's capital gain distribution is showing up as a dividend instead, FWIW.

If it is a short term distribution it goes on schedule B - dividends. If it is a long term distribution it goes on Schedule D - capital gains. That may be what you are seeing.

It was a short term capital gains distribution, AFAIK (I will double check that). So it sounds like it is already in the correct spot then. Thank you!

[livesoft]

If I've noticed an error on a 1099-DIV, do I need to let someone at Vanguard know, or should I just wait for a corrected form to come? (Haven't filed taxes yet, as I was expecting late brokerage forms and/or corrected ones, based on the threads here last year.) In this particular case, one fund's capital gain distribution is showing up as a dividend instead, FWIW.

You just have to follow the instructions to the tax forms. Easy.

[Leesbro63]

My observation is that almost no one with a brokerage account should ever file their tax returns before the due date...or at least not until April 1st-ish. It's getting better than when the deadline was Jan 31st and the brokerages almost all got it wrong by default, but we're still not where original Feb 15th Forms 1099-DIV can be assumed to be correct.

[Doc]

Just received a corrected 1099 (consolidated) from VBS dated 3/10/16. Four Vanguard Treasury/Government funds have corrected dividends.

I also this week received a notice from another broker that there was a "reclassification" of a distribution from Income to Return of Capital which was dated February 24, 2016. So far have not gotten a corrected 1099. So VBS is not the only PITA.

[acanthurus]

Removed

[surfer1]

I've received a corrected 1099-DIV every year for the past ~5 years. This is the exact reason why I have not filed yet, even if an expected refund. I file at the end of March.

If you get a corrected 1099 after filing and it's for a small amount (< $100), I'd consider ignoring it. As another poster mentioned, the IRS will either ignore it or bill you. In which case, you'll get or pay interest on the amount due.

[Doc]

As another poster mentioned, the IRS will either ignore it or bill you. In which case, you'll get or pay interest on the amount due.

That was me. Thanks for noticing.

I haven't filed yet so I will make the correction(s).

[Quark]

I know how to get a refund without filing a tax return. I thought everybody knew how to do that.

Reduce estimated tax payments or something else?