Tax Season: a message from Good Wealth Management

Ed

 

Edwin L. Good, President
Good Wealth Management
February 23, 2012

 

 

Now is the time of the year to begin watching your mailbox for tax information in preparation for the April 17 tax filing deadline.

For our clients who hold investments in non-IRA accounts, you need to be on the lookout for 1099 reports from your brokerage firm (LPL), or from investments held outside your LPL accounts.

Below is an updated excerpt taken from a larger insert that arrived with your December LPL statement.

IMPORTANT TAX REMINDER: IRS MOVED 1099 MAILING DEADLINE TO FEBRUARY 22 (Due to the complexities involved with the cost basis legislation)

This year for the first time, LPL Financial and all other broker-dealers are required to report detailed cost basis information on equities acquired on or after January 1, 2011, to you and the IRS on IRS Form 1099-B. In a preliminary review of your IRS Form 1099 information, a service vendor of LPL Financial reported discrepancies in its data related to the cost basis legislation.

These discrepancies may have prompted a subsequent corrected Form 1099 to be sent to you. In light of this discovery, LPL Financial extended the Form 1099 mailing by one week, mailing all Form 1099s by February 22 instead of February 15.

This step provides additional time to allow the vendor to correct any potential inaccurate information, thereby preventing the need to send a corrected IRS Form 1099 for these discrepancies, which could obligate you to file amended federal and state returns. Please note, however, that a revised 1099 may still occur if investment companies you own restate income information.

YOU MAY WANT TO DELAY YOUR TAX RETURN UNTIL AFTER MID-MARCH, in case LPL needs to issue a delayed or corrected 1099.

For our clients that own managed futures positions outside your IRA, or master limited partnerships, you must wait for a K-1.  These tax reports often do not arrive until late March.  You will probably have to wait until April to file your return.  (If you own any of these positions, we will mail you a personalized notification.)

Please call us if you have any questions about your tax filing situation.  Every year, reporting requirements are getting more difficult.  We want to help.


What’s Next?: Learn More About Our Team
What’s Next?: Learn More About LPL Financial
What’s next?: Learn About Our Services
What’s next?: Join us on Facebook. Join the conversation