You should make the adjustment and enter the adjusted amount in Box 5. This will make the entry and the tax return accurate. Keep the information with your tax records.
If you choose you can do a physical nominee of the distribution on Form 1099-DIV (not necessary) so that the IRS has the recorded amounts attributable to you and the other person. As long as you keep your records and the other person is reporting their share, you can just keep the details with your tax records should you need them later.
Nominee Returns.
Generally, if you receive a Form 1099 for amounts that actually belong to another person or entity, you are considered a nominee recipient. You must file a Form 1099 with the IRS (the same type of Form 1099 you received). You must also furnish a Form 1099 to each of the other owners.
File the new Form 1099 with Form 1096 (this is a transmittal for the 1099) by mailing to the Internal Revenue Service Center for your area. (Provided on the Form 1096)
- On each new Form 1099, list yourself as the payer and the other owner, as the recipient. On Form 1096, list yourself as the nominee filer, not the original payer. The nominee is responsible for filing the subsequent Forms 1099 to show the amount allocable to each owner.
If you choose this one here is the TurboTax program for creating 1099s.
The forms filed with the IRS should be the red copy so if you don't have a color printer, go to the IRS website and order the forms here:
@2Travelers
[Edited: 03/15/2022 | 12:24p PST]
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