1099's and NR4's

[Rickerbucks]

Can I just ask for some other peoples experiences.

If you are a US resident but perhaps still have some CDN mutual funds held in a trading account (NON- RSP), what do you do about reporting.

My clients get 1099's from the firm but they have to be sent out BEFORE the mutual fund NR4's are sent. Thus the 1099 are pretty much useless. in addition we do not even GET the NR4 slips.

What do people do? Is it OK for a client to "change" the 1099 provided by us (the investment firm) and attached the NR4's? is that good by the IRS?

[nelsona]

Why would the 1099's need changing?

Unless the 1099 has US tax withheld, it isn't sent with the 1040.

[nelsona]

.. .and that is US tax withheld.

[Carson]

Can I just ask for some other peoples experiences.

If you are a US resident but perhaps still have some CDN mutual funds held in a trading account (NON- RSP), what do you do about reporting.

My clients get 1099's from the firm but they have to be sent out BEFORE the mutual fund NR4's are sent. Thus the 1099 are pretty much useless. in addition we do not even GET the NR4 slips.

What do people do? Is it OK for a client to "change" the 1099 provided by us (the investment firm) and attached the NR4's? is that good by the IRS?

I'm familiar with the dual 1099/NR-4 slips for the same income. I would use the more correct NR4 figures on the 1040 return, both income and withholding tax.

In my experience, the IRS' system does not automatically compare issued 1099's to the 1040, in the way that CRA does. CRA will contact the taxpayer and tell them that they missed a $50 T5. Thus, it's "safe" to use the NR4 figures, even thought they may have been adjusted since the 1099 was issued.

[Rickerbucks]

Why would the 1099's need changing?

Unless the 1099 has US tax withheld, it isn't sent with the 1040.

Well a client just got a 1099 in the mail that says "Total Ordinary Dividends" - $7,700

BUT a review of the four mutual fund NR4's are

dividends $3,500
Cap Gains $2,900
Return of cap $1,600
Withholding tax $532

the $7,700 on the 1099 is merely the summary of the NET cash flow received from the funds - the "dividends". Its not broken out into the differnet form of income. Again, its because we as a firm don';t knwo that that breakdown is.

So am I to assume from your comment that the 1099 need NOT be sent to the IRS with the 1040? that she merely send the NR4's?

I would assume she just need attach the four NR4's to the "wrong" 1099 and it will all be good.

Yes?

[Carson]

Why would the 1099's need changing?

Unless the 1099 has US tax withheld, it isn't sent with the 1040.

Well a client just got a 1099 in the mail that says "Total Ordinary Dividends" - $7,700

BUT a review of the four mutual fund NR4's are

dividends $3,500
Cap Gains $2,900
Return of cap $1,600
Withholding tax $532

the $7,700 on the 1099 is merely the summary of the NET cash flow received from the funds - the "dividends". Its not broken out into the differnet form of income. Again, its because we as a firm don';t knwo that that breakdown is.

So am I to assume from your comment that the 1099 need NOT be sent to the IRS with the 1040? that she merely send the NR4's?

I would assume she just need attach the four NR4's to the "wrong" 1099 and it will all be good.

Yes?

No, I believe what Nelson means is that you don't send any slip to the IRS unless it shows **US** tax withheld. So, no 1099 and no NR4's. Just keep the NR4's as backup, and write a note on the "wrong" 1099 explaining how the net amount was calculated.

[canuck1915]

I ll be working on 1099 as a TN holder, whihc forms should I file, the company said I have to agree NJ 1099 contract , what else should I do, my ssn is enough right?