Where is My 1099!?

March 14, 2019
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Tax season is stressful! One of the most important steps in tax preparation can often be the most challenging: gathering all forms and documents. If you received income from someone other than your employer (a bank or financial institution) you will receive a 1099. This form is sent to you and the IRS to document the income that you received and any deductions that may offset that income.

Many 1099 forms are mailed out in January and February allowing you to complete your tax preparation. However, there are a few that will not be sent until March 15, the final deadline for companies to file. This delayed filing allows companies to reduce errors, and reduce the need to mail a corrected 1099.

It can be frustrating to receive your statements in one of the later phases but, there are good reasons for the delay:

  • For certain security types, final tax information from the bank, institution, or other type of issuer may not be received until after the standard deadline.
  • At the end of the tax year, Mutual Fund and other companies often change the tax characterization of distributions paid during the tax year. This income reclassification can lead to a more favorable tax treatment. The reclassification process takes place after the end of the tax year, during the first quarter. The final reclassification figures are not always available by the January 31st The IRS requires final income reclassification to be reported to you on Form 1099. In order to avoid the confusion and frustration of sending a revised statement, statements are not sent out until final numbers are calculated.

Please note: Reclassification is an industry-wide activity. All financial industry firms receive reclassified data from the issuers.

For those who have not received a 1099 in one of the earlier groupings, there are things that can be done. You can go to your online account statements and your financial institution may provide a preliminary 1099 form. This informational document may assist you in tax preparation but, should NOT be used for the purpose of filing tax returns with the IRS or with any state or other regulatory authority. Please wait until you receive the final 1099 consolidated Tax Form Statement.

You can also reach out to us, your financial advisor and ask for information and assistance. For accounts that we manage we can research when your 1099 was or will be sent. We are always happy to assist clients in whatever way we can.

We understand that the delay in receiving your final tax statements can be challenging but, we hope that this helps you to understand why it is in your best interest to wait until accurate and final numbers are available. Please note that the information in this blog is intended to be a helpful clarification but, we suggest that you discuss your specific tax issues with a qualified tax advisor.

Have questions about 1099s, taxes or any other Wealth Planning concerns? Please feel free to call us any time and we are happy to discuss your personal situation.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All investing involves risk including loss of principal. No strategy assures success or protects against loss.

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