I have a client who had 1099-DIV with Box 9filled, labeled - Cash Liquidation Distribution. Went up to Schedule B to bring up the 1099-DIV form (both simple and detailed) and to my surprise there was not a column for Cash Liquidation Distribution. Can this be fixed asap? The workaround for anyone having the issue was to ask the taxpayer if that was return of capital (in that case it's nontaxable, LTCG or STCG], Depending on their answer you either file Schedule D / 8949, or exclude it altogether.
I wouldn't call that a workaround if it's part of the job they are paying you to do. And some brokers do keep track of that, so they add it to Capital Gain Distributions once the stock basis is depleted to zero.
Well, you do the job when you have a field to make the entries, or? Why do we pay so much for ProSeries then end up improvising or having form with missing box? Regardless, workaround or work within, it shouldn't happen. When you grab 1099-R or DIV in ProSeries, you expect to see every box as designed by the IRS, or? Am I wrong?
What do you propose the software should do, once an entry is made? Ask you what you want to do with it? So you're back to getting information from the client, anyway.
