“Of course that information was incorrect (two lines were left blank) and I will be assessed fees and penalties if a correct form isn't submitted.”--> If you receive any dividends of more than $10 during the given tax year, you need to report it to the IRS. Form 1099-DIV is the document you provide to the IRS with this information. This form gives the IRS information on any ordinary dividends you receive, any qualified dividends -- dividend income that qualifies for low tax rates -- your total capital gains distributions. Information reporting penalties. Any person who does not file an information return or a complete and correct information return with the IRS by the due date is subject to a penalty for each failure. A penalty applies to information returns as follows: Correct information returns filed within 30 days after the due date, $15 each. Correct information returns filed after the 30-day period but by August 1, $30 each. Information returns not filed by August 1, $50 each. ALSO you need to maintain your capital gains transaction register and all supporting documentation for at least 7 years after you file Schedule D/ SCh D-1. The Schedule D will account for your basis and the sales proceeds. If you don't file SCh D, the IRS will assume that the entire amount on the Sch D is taxable gain and you'll get a VERY rude surprise in the mail in about 18 - 24 months when the IRS tries to collect the tax on that!
Please visit the IRS Website here;
A Guide to Information Returns
“ I don't know what I'm doing, I'm at a loss, and making myself sick over this situation.”-->I am not sure if this is your situation; however, if you have that many stock transactions, the IRS allows you to attach your brokerage statement as long as it shows a total sales price and total basis. If your broker supplies you with a report that has the same information required by the Schedule D-1, just attach it to your return and enter "see attached," with total gross proceeds and cost basis, on Schedule D. ,i.e., on Sch D, you would write "See _____ (brokerage company) Statement Attached" Then you would put the total amounts on the sales price and basis columns. If you are using a tax software program, it will figure all of that for you. E-file rules allows only one sch D, so if you use a software program, it is designed to accommodate many entries beyond what you may physically see on a form. Effective January 13, 2006, taxpayers can now e-file with multiple Schedule D transactions using the Form 8453, U.S. Individual Income Tax Declaration. Taxpayer's must attach the paper Schedule D-1 or acceptable substitutes to Form 8453. Form 8453 must be signed by the taxpayer and mailed to the Internal Revenue Service within three business days after receiving acknowledgement of tax return acceptance. I guess you may get some help from a tax practitioner in your local area.
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