Level 2

Question

Client received a combined 1099-DIV, 1099-INT, and 1099-B on their SEP IRA account - why?

Forum|Forum|4 years ago
October 12, 2021
3 replies
20 views

Client received a combined 1099-DIV, 1099-INT, and 1099-B on their SEP IRA account - all stock is in the SEP IRA - they are still just contributing to it and nothing has been withdrawn.

#1 - why did they even receive the 1099's? they are not large amounts but I thought it was not taxed until withdrawn - 1099-DIV Line 1a 907.84; Line 1b 520.89; Line2a 278.73

1099-INT 21.42

1099-B Box D Total 1985.89

#2 - If they are not taxable -

**Does the Wealth Management need to file corrected 1099's to show zero?

++Or how do you enter these amounts and where - so you do not get a letter of not reporting from the IRS or they show as taxable?

Thank you

ProConnect Tax

This topic has been closed for replies.

qbteachmt

Level 15

I can think of two things to confirm:

The account really did get set up as SEP IRA.

There is no carry-over excess contribution being managed.

Don't yell at us; we're volunteers

J

JCAIN1979Author

Level 2

It was setup as a SEP IRA many years ago -

And there is no carry-over excess contribution

Thank you

George4Tacks

Level 15

Is the ID # on the 1099 the Social Security Number of the client?

Answers are easy. Questions are hard!

J

JCAIN1979Author

Level 2

Yes it is

BobKamman

Level 15

Don't you just love it when these problems are first noticed in the final week before October 15 deadline?

SEP's don't issue 1099's. I hope you're not planning on taking a deduction for contributions to it.

J

JCAIN1979Author

Level 2

Client just dropped off last of information Saturday

BobKamman

Level 15

That doesn't matter, it's all your fault anyway. It's always the preparer's fault. But when did he drop off this 1099? I discourage clients from bringing me stuff piecemeal. Generally, I don't start on a return until I have everything I need (unless the client wants to pay me two or three times the fee for doing a complete return). They don't realize that just because they have only one preparer, doesn't mean that their preparer has only one client.

Sometimes, though, you have to get started on the return by April 15 to figure out how much to pay with the extension request. Is this a new client? Was this a new SEP?

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