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02/24/2015

Forms 1099 - Delayed Delivery to Taxpayers

Many taxpayers who must report investment income from information they receive on Forms 1099 and Schedules K-1 are learning their investment companies and investment account custodians will be sending them these forms later than usual.

Important-notice-hi1A major investment company has issued an information update warning investors they may not
receive their final 2014 IRS Forms 1099 (B, DIV, INT, OID and MISC) until mid-March. 

Not long ago, these forms were due in taxpayers’ hands by January 31st, with fines for issuers who sent them late.  Now, investment advisors may send a “Pending 1099 Notice” as a temporary substitute to meet the IRS deadlines for sending Forms 1099.

These Pending 1099 Notices inform investors that more information may be coming, but do not provide investors the information necessary to file their returns. The notices instead provide a date when a final tax Form 1099 is supposed to be mailed.  This year, IRS regulations state Forms 1099 must be mailed no later than March 16, 2015 for the 2014 income tax year.

All of this means taxpayers who need information from Forms 1099 to properly complete their income tax return may face several weeks of delays.  Nevertheless, as our clients’ tax advisor, we are encouraging our clients to gather and send us their personal income tax information as soon as they can.

We will begin preparing their returns, then update their information to reflect information from Forms 1099 and other tax documents once they arrive.  This way we may sooner identify and inform clients about any remaining tax-saving opportunities, or notify them about any additional tax payments due.

This approach may reduce a client’s overall tax obligation, and will reduce exposure to late filing penalties and/or tax underpayment penalties associated with not meeting the April 15th tax filing deadline.

Should you have any questions about this issue or possible delays, please call us at 816.741.7882 or contact us online at McRuer CPAs.  

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