Fidelity Year End Tax statements DISCREPANCIES
 

Yes, the Fidelity year end tax statement detail does not agree to their monthly statements of distribution, and does not agree with the Royalty distributions statements from the two oil and gas company statements directly received from them.

And then Turbo tax can't keep the two different royalty company statements separate, I have entered them twice, and The Turbo Tax Schedule C isn't a direct entry but more of a rube goldberg set of questions.

The detail needed to file for public royalty trusts in the oil and gas industry is just rube goldbergish. . all this for a $37 royalty payment from one company which i owned for 15 days as a trade, which was supposed to be a long term hold.

So yes, turbo tax sucks for complex tax filings, and i am waiting to talk to fidelity to see what they say on Monday, as they have over $100 more in distributions than i actually received, and that the LP said i should have received

So yeah, you don't need a CPA to see the different amounts from two different sources, but why I hate accounting.

finance guy, not accounting guy, but we know the same things

Good on you that you caught those discrepancies. I am sure you don't want a letter from the IRS, an audit or having to file an amended return.

This made me chuckle. I got my MBA in Finance and my primary finance professor taught Michael Milken everything he knew. Someone asked him what the difference was between a finance and accounting major:

"If you ask an accounting major what two plus two is, he will answer, 'Four'. You ask a finance major, it'll be 'What do you want it to be?' " :1rotfl:

First mistake, Fidelity.

:1rotfl::1rotfl:

Made a customer care fidelity rep spend an hour plus on a saturday afternoon proving out that there is an issue, and it may be systemic. $72.15 higher on the 1099 MISC than the actual cash payments and external documentation. However, every month is wrong and more than one company is wrong, so its possible to be a systemic issue, which I told the very junior weekend warrior.

Yeah, I am a small time investor, but i make sure that all the numbers going into the tax return are correct on the revenue top line. . . . there is no allowance for discrepancies for income.

So if you have Fidelity and have Royalty payments from royalty trusts, please check your 1099 MISC versus the actual company supplied documentation.

And this time, first time, I took the turbo tax premiere audit defense as I am not thinking that fidelity will come back with corrected statements in time.

and yes, with finance, what number do you want the answer to be?

ABSOLUTELY CORRECT!

:bigbow:

:mademyday:

yeah, I know, but i have had it for so long, just lazy to move IRA and trust accounts to other brokerages. . .

They have offices so close to me either here or in FL, that i can just walk in and chat with them if I want to, or to quickly produce documentation, etc to get it processed.

finance guy

Yep. And he’ll offer to buy you dinner first.

Boomer

Way back in the 1960s I had a problem with Fidelity so I quit them. I refuse to use them to this day.

That said, it is not unusual for me to receive at least one amended 1099 from a brokerage.

Makes me happy just have an IRA with them. Wonder how they managed to screw this up.

Just because they made an error with this one individual of type of income doesn't mean everything else they do is bad. I check every year and all my data is 100% correct. I never had a problem with Fidelity. Top notch company in my opinion. It will be interesting to find out what caused the error. Was the income transmitted to them incorrect eventhough the statements to the client were correct?

Being in IT with database programming and finance with financial reporting and analysis for 30 years, I see more discrepancies in data that one would expect. . . flat out does not tie out errors. And its easy to happen with the amount of programming required to perform to the IRS standards at times. And there is always a first time for errors, so past history never guarantees future success. And if there was, such famous bankruptcies with audited statements should never have happened, correct?

at my current company, there are millions in accounting adjustments in revenue after the reported revenue to the street, by the auditors. A friend of mine was a very high level controller at GE, and he would tell me how they would correct accounting errors if they weren't in the company's best interest, but if the error showed more favorable, nothing would be corrected. . . and yes, the revenue at GE was cooked as two different friends of mine inside the company related to me.

finance guy, who checks on the accounting guys to be sure they are correct.

I agree, why post before having all the answers. I await the response tomorrow.

Would have thought the auditors would pick up on this at some point.

A former GE finance guy here too. My favorite tactic at GE was when a vendor offered an early payment discount, GE would pay it late and take the discount too. Don't remember any of those vendors complaining (usually small guys who couldn't afford to take on GE). Sad.