Faulty 1099-B’s Spur IRS Petition for Taxpayer Relief

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    Posted: 26 March 2012 11:53 PM

    This accountant is reportedly one of the most knowledgeable regarding tax laws for traders and investors. 

    He is raising the alarm that new IRS reporting regulations, specifically flawed 1099B’s that were rushed into service this year, are resulting in faulty filings. Supposedly the IRS is holding taxpayers responsible if their filings have errors based on the faulty 1099-B’s issued by their brokers.
    Here is a petition he is circulating followed by a link.

    Greetings! 

    New ?cost-basis reporting? rules for 2011 are not functioning properly. Botched implementation is unfairly causing millions of taxpayers to significantly overpay their tax bills. The IRS should have issued the same set of rules for brokers and taxpayers, but did not. How can the IRS now send tax notices and audits to hundreds of thousands of taxpayers over 1099-Bs prepared under one set of rules, while holding taxpayers accountable to another set of rules? Taxpayers did not sign up to be deputy accountants for this mess!

    The leading financial media continues to interview my partner Darren Neuschwander, CPA and me and our message is getting through. In the WSJ, Barron’s and Forbes this past week and in one of the most respected tax reports coming up this week. We published this petition tonight and already over 130 people sent 312 letters to Congress. Working together, we can make a difference and fix this tax-reporting problem.

    Please read, sign and send the above petition, and ask your trading friends to sign it, too. It takes just minutes. We are already having an impact! Thank you for your cooperation.

    Sincerely,
    Robert A. Green, CPA
    Leader TradersAdvocacy.org and GreenTraderTax Traders Association
    CEO, GreenTraderTax.com
    Managing Member, Green NFH, LLC

    http://greentradertax-traders-association1.rallycongress.com/6447/securities-traders-need-tax-relief-on-irs-cost-basis-reporting-ru/?m=758320

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    Posted: 27 March 2012 03:34 AM #1

    Thanks for the link.  Tax reporting this year is a nightmare!

    Trademonster didn’t even give me a complet 1099, theirs only had trades from December 2011 because Penson changed something in the backend to supposedly prepare fdor the new regulations.  They say to just use a trade data report generated from the platform….crazy!

    I have tried both Gainskeeper and Tradelog, both with VERY mixed results and a TON of work.  This year I am going to try and break the craziness and will be using this service. TradeMatcher Schedule D Preparation

    It is a bargain for $99!

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    Jan13 $600 or BUST! LEAP Spread Trial: Bought Jan13 590/600 BCS @1.45 on 9-21-2011
    Max Profit: 689%  Current Price:
    4.50 +210% as of 5-2-2012 - Woohoo! Finally Green!

         
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    Posted: 27 March 2012 08:22 AM #2

    Yeah, I was shocked at what TradeMonster gave us. At least with OptionsHouse, who also uses Penson, I got a .txf file to load into TurboTax. For the TradeMonster data report, I had to write a converter script in Python to spit out a .txf file, but I’m still digging through everything to verify that it’s all correct.

         
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    Posted: 27 March 2012 08:25 AM #3

    TurboTax caught about twenty errors on my broker’s (e*Trade) calculations.  Upon looking into the discrepancies I found each to be in error by one cent.

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  • Posted: 11 April 2012 08:36 PM #4

    Rudyo - 27 March 2012 06:34 AM

    Thanks for the link.  Tax reporting this year is a nightmare!

    Trademonster didn’t even give me a complet 1099, theirs only had trades from December 2011 because Penson changed something in the backend to supposedly prepare fdor the new regulations.  They say to just use a trade data report generated from the platform….crazy!

    I have tried both Gainskeeper and Tradelog, both with VERY mixed results and a TON of work.  This year I am going to try and break the craziness and will be using this service. TradeMatcher Schedule D Preparation

    It is a bargain for $99!

    Rudyo, how did the service work out for you?  I have not been able to locate much information about them and frankly i am a little concerned about privacy and ID theft.

    JC

         
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    Posted: 11 April 2012 09:55 PM #5

    Looks like there’s some positive testimonials here: http://www.elitetrader.com/vb/printthread.php?threadid=119426

         
  • Posted: 11 April 2012 10:16 PM #6

    nkmho - 12 April 2012 12:55 AM

    Looks like there’s some positive testimonials here: http://www.elitetrader.com/vb/printthread.php?threadid=119426

    Thanks for referencing those.  I called the tradematcher.com number and spoke to Wayne - seems like a good guy.

    I sent over my information - i figure i could not find anything negative and their is a 3 plus year history in various forums - so i think they are all legit.

    JC

         
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    Posted: 11 April 2012 10:22 PM #7

    JAC Mobile - 11 April 2012 11:36 PM
    Rudyo - 27 March 2012 06:34 AM

    Thanks for the link.  Tax reporting this year is a nightmare!

    Trademonster didn’t even give me a complet 1099, theirs only had trades from December 2011 because Penson changed something in the backend to supposedly prepare fdor the new regulations.  They say to just use a trade data report generated from the platform….crazy!

    I have tried both Gainskeeper and Tradelog, both with VERY mixed results and a TON of work.  This year I am going to try and break the craziness and will be using this service. TradeMatcher Schedule D Preparation

    It is a bargain for $99!

    Rudyo, how did the service work out for you?  I have not been able to locate much information about them and frankly i am a little concerned about privacy and ID theft.

    JC

    It worked out great. The communication was excellent, very fast and very thorough. You can see that he knows what he is doing.  You don’t need to send him any private information, i just sent .csv exports from trademonster.  They don’t need to have any account numbers, just edit them before you send. 
    He also does all the work and sends the final files to you before you pay!  We emailed back and forth after he was done and he was very patient answering each of my issues.  He offered to have a phone call if needed.  I wouldn’t hesitate to use him again.  I detest gainskeeper and tradelog after spending hours with each trying to make sense of my trades, so this was a welcome solution.

    Signature

    Jan13 $600 or BUST! LEAP Spread Trial: Bought Jan13 590/600 BCS @1.45 on 9-21-2011
    Max Profit: 689%  Current Price:
    4.50 +210% as of 5-2-2012 - Woohoo! Finally Green!

         
  • Posted: 11 April 2012 10:49 PM #8

    Rudyo - 12 April 2012 01:22 AM
    JAC Mobile - 11 April 2012 11:36 PM
    Rudyo - 27 March 2012 06:34 AM

    Thanks for the link.  Tax reporting this year is a nightmare!

    Trademonster didn’t even give me a complet 1099, theirs only had trades from December 2011 because Penson changed something in the backend to supposedly prepare fdor the new regulations.  They say to just use a trade data report generated from the platform….crazy!

    I have tried both Gainskeeper and Tradelog, both with VERY mixed results and a TON of work.  This year I am going to try and break the craziness and will be using this service. TradeMatcher Schedule D Preparation

    It is a bargain for $99!

    Rudyo, how did the service work out for you?  I have not been able to locate much information about them and frankly i am a little concerned about privacy and ID theft.

    JC

    It worked out great. The communication was excellent, very fast and very thorough. You can see that he knows what he is doing.  You don’t need to send him any private information, i just sent .csv exports from trademonster.  They don’t need to have any account numbers, just edit them before you send. 
    He also does all the work and sends the final files to you before you pay!  We emailed back and forth after he was done and he was very patient answering each of my issues.  He offered to have a phone call if needed.  I wouldn’t hesitate to use him again.  I detest gainskeeper and tradelog after spending hours with each trying to make sense of my trades, so this was a welcome solution.

    Thanks for the update.  I am really glad you posted that as my accountant was way too busy to do it - and probably would have charged me an arm and a leg. 

    I just hung up the phone with Wayne - at tradematcher.com.  Pretty amazing he is on the East Coast and is still working.

    An interesting thing he caught.  I downloaded the detail about a week ago.  Then re-downloaded the PDF statement from Fidelity today.  Seems Fidelity had corrected my statement - so if any of you are with Fidelity - check your statements - mine was updated on 4 9 2012.

    The good news was in the corrected version that had the wash sales done correctly. 

    Looks like i will be using him next year as well.

    JC

         
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    Posted: 11 April 2012 11:41 PM #9

    Rudyo - 12 April 2012 01:22 AM

    It worked out great. The communication was excellent, very fast and very thorough. You can see that he knows what he is doing.  You don’t need to send him any private information, i just sent .csv exports from trademonster.  They don’t need to have any account numbers, just edit them before you send. 
    He also does all the work and sends the final files to you before you pay!  We emailed back and forth after he was done and he was very patient answering each of my issues.  He offered to have a phone call if needed.  I wouldn’t hesitate to use him again.  I detest gainskeeper and tradelog after spending hours with each trying to make sense of my trades, so this was a welcome solution.

    Hmmm, I’ll definitely give him a shot next year. This year, since I tried out a few different brokers in 2011, I had to deal with reports from 3 sources. I like to program for fun sometimes, so I cranked something to deal with all the trades that I got. But, as I’m not well versed in tax issues, so I don’t entirely trust myself. Next year, I send my reports off and see how the results compare to my scripts.