My broker is Morgan Stanley. They sent me two 1099's each with multiple countries listed that I have payed foreign tax to. The instructions plainly state to enter all countries, then next select one to enter the foreign sourced income. After entering just one country, all the other countries I have dutifully listed are simply tossed aside. The program gives me two choices, none of which address the other countries I have stated I want to enter data for. I have 9 countries from two 1099's to enter. According to this suggestion, I must dummy up either 9 new dummy 1099's (or 16 since some countries are listed in both 1099's), and then doctor my accurate 1099's to migrate the foreign tax (line 6) to the dummy 1099's. This is not just overly burdensome, but potentially very error prone. I have heard that if you make a mistake on foreign taxes paid, the IRS can slap you with heavy fines, and the returns can be audited forever.
