My broker did not generate a 1099 for our club...help!
Lesley Hall on
Our broker is telling us that we don't need to file because our total gains for the year was less than $10 (we are a new club). Is this true? Has anyone else experienced this?
JAYNE GILBERT on
I think there is a new "Ten Dollar" rule. Laurie, could you elaborate on this please?
On Wednesday, February 17, 2016 8:27 AM, Lesley Hall <lesley.t.hall@gmail.com> wrote:
Our broker is telling us that we don't need to file because our total gains for the year was less than $10 (we are a new club). Is this true? Has anyone else experienced this?
Laurie Frederiksen on
There is a difference between whether they have to give you a 1099 and whether you have to file.
Since you have an EIN number, the IRS will be looking for a return from you. To avoid love notes sent from their computer asking why you didn't file and charging you large non-filing penalties, we'd highly recommend you generate your tax forms, send them in and distribute K-1's to your members.
It's easy to do with bivio. if you haven't had much income, it should be easy to verify that what is in bivio is correct without looking at a 1099 form.
Laurie Frederiksen Invest with your friends! www.bivio.com
Our broker is telling us that we don't need to file because our total gains for the year was less than $10 (we are a new club). Is this true? Has anyone else experienced this?
Lesley Hall on
Thank you! And you were right. I just whipped through the Bivio workflow and was easily able to generate the required documents. Thank you so much for the swift reply! I certainly do not want IRS love notes
On Wed, Feb 17, 2016 at 9:43 AM, Laurie Frederiksen <laurie@bivio.biz> wrote:
There is a difference between whether they have to give you a 1099 and whether you have to file.
Since you have an EIN number, the IRS will be looking for a return from you. To avoid love notes sent from their computer asking why you didn't file and charging you large non-filing penalties, we'd highly recommend you generate your tax forms, send them in and distribute K-1's to your members.
It's easy to do with bivio. if you haven't had much income, it should be easy to verify that what is in bivio is correct without looking at a 1099 form.
Laurie Frederiksen Invest with your friends! www.bivio.com
Our broker is telling us that we don't need to file because our total gains for the year was less than $10 (we are a new club). Is this true? Has anyone else experienced this?
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Lesley T. Hall
Linda Wiltse on
NEVER LISTEN TO TAX ADVICE from a broker. A partnership must file a tax return or get penalized. K-1's should be issued to partners, even if there are no entries. As a tax preparer, it causes problems if the client does not get the K-1 each year.
As for the $10 rule some are referring to, this applies to banks, companies and brokers who issue 1099's. They do not need to issue a 1099 for income under $10, BUT that does not relieve the taxpayer from reporting that income on their tax return, however small. However, the IRS doesn't get the 1099 for a small amount so when they do their match to income, it won't show up.
Linda Wiltse
Pointe Players
From: club_cafe@bivio.com [mailto:club_cafe@bivio.com] On Behalf Of Lesley Hall Sent: Wednesday, February 17, 2016 9:27 AM To: club_cafe@bivio.com Subject: [club_cafe] My broker did not generate a 1099 for our club...help!
Our broker is telling us that we don't need to file because our total gains for the year was less than $10 (we are a new club). Is this true? Has anyone else experienced this?
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