Incorrect Dividend Information on 1099B

I have a Closed End Fund that pays distributions in the form of ordinary dividends, qualified dividends, short and long term gains and return of capital. My broker has reported the distributions as ordinary dividends which is not merely incorrect but wrongly increases my tax obligation.

Despite intense efforts, I have been unable to get the broker to issue a corrected 1099B. The broker has admitted the error but has failed to take the needed action.

What is the best option for me: file using the correct information, which I have, and deal with the IRS if my return is challenged, or some other approach?

Thanks in advance for assistance on this matter.

2069

Expert Alumni

Mar 24, 2025 12:51:18 PM

You can correct the data based on your own information if you're confident that it is correct. The IRS may ask about it, so just be prepared to show the rationale behind your numbers when they do. I'd recommend keeping that information in an easily accessible information for about three years - though odds are if they are going to ask it will be in the later part of this year (after the 10/15 extension deadline passes, typically.)

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Incorrect Dividend Information on 1099B