Important Tax Dates

Important Tax Dates

This time of year, it can be hard to keep track of all the tax documents you need and when you’re supposed to receive them. Below are the mailing dates for some of the 1099 forms you may be receiving from Raymond James. If you haven’t received these forms and are expecting to, it’s very important to… 

a) Please reach out to your financial advisor and let them know what you haven’t received.

b) Do not file your taxes until you have received all the necessary information. It’s much easier to file for an extension than it is to get audited.

 

2021 Form 1099-series mailing schedule:

1/31/22 – Form 1099-Q and Retirement Tax Packages

2/15/22 – Original Form 1099s

2/28/22 – Delayed and amended Form 1099s

3/15/22 – Any remaining delayed original Form 1099s 

 

Delayed form 1099s

You may have noticed the delayed 1099 mailing date has moved to 3/15, as opposed to last year when it was scheduled for 2/28. This has been allowed by the IRS to ensure any delayed data from certain investments and/or taxable events gets recorded for our clients. Such delayed information includes:

    • Income reallocation related to mutual funds, real estate investment, unit investment, grantor and royalty trusts, as well as holding company depositary receipts.
    • Processing of original-issue discount and mortgage-backed bonds.
    • Expected cost basis adjustments including, but not limited to, accounts holding certain types of fixed-income securities and options
    • If you are expecting a delayed Form 1099, a preliminary statement can be found within Client Access for informational purposes only. Keep in mind this is not the final 1099 form, as at that point, it is still subject to change.

 

Amended Form 1099s

Even if your 1099 is delayed for additional information to come in, it still can be amended. The IRS requires Raymond James to amend a 1099 if adjustments are required after the fact. Since these amended 1099s are produced on a case-by-case basis, there is no deadline to when they need to be produced. Here are some possible reasons that warrant an amended Form 1099: 

Even after delaying your Form 1099, please be aware that adjustments to your Form 1099 are still possible. Raymond James is required by the IRS to produce an amended Form 1099 if notice of such an adjustment is received after the original Form 1099 has been produced. There is no cutoff or deadline for amended Form 1099 statements. The following are some examples of reasons for amended Form 1099s:

    • Income reallocation
    • Adjustments to cost basis (due to the Economic Stabilization Act of 2008)
    • Changes made by mutual fund companies related to foreign withholding
    • Tax-exempt payments subject to alternative minimum tax
    • Any portion of distributions derived from U.S. Treasury obligations

Upon discovering the need for an amended 1099, it may be getting pretty close to April 18. If that’s the case, it may be wise to reach out to your tax professional and discuss the possibility of filing an extension, especially if any of the above examples pertain to your situation. Again, an extension is always better than giving the IRS incomplete information, so make sure you talk to your tax professional about your options. If you weren’t expecting the amended 1099 and already filed your tax return, contact your tax professional as soon as possible to see if you fit the requirements to re-file your return.

Further information about tax reporting can be found here.

 

Double Tax Packages:

Some of our clients may be confused over receiving two tax packages. It’s important to keep both as they are not duplicates and, in fact, two separate packages. We assure you this was completely intentional and both packages are necessary for completing your 2021 tax return. Here’s why, straight from Raymond James:

As you know from communications shared with you last year, Raymond James Trust Company of New Hampshire (RJTCNH) succeeded Raymond James & Associates, Inc. (RJA) as custodian of your IRA, effective September 7, 2021. With the custodian change, your account number, relationship with [me/us] and support from Raymond James Client Services remained the same. Additionally, RJA, as sub-custodian, continues to support your account(s) and process all transactions, forms and documents.

The tax form mailings:

You will receive two 2021 tax packages because you had reportable activity before and after the custodian change.

The first package contains reportable activity occurring from January 1, 2021 – September 3, 2021 under the RJA custodianship.

The second package will contain reportable activity occurring from September 7, 2021 – December 31, 2021 under the RJTCNH custodianship.

Both tax packages will contain a summary of assets page detailing the total of each asset at year-end. However, the total value of these assets will only appear on the RJTCNH package as it reflects the Fair Market Value that will be reported by RJTCNH to the IRS for your account.

The contribution and/or distribution summaries will be different as well as Forms 1099-R and/or 5498. Again, all forms must be used when completing your 2021 tax return.

We hope this guide helped answer some questions and clear up some confusion you may have had regarding 2021’s taxes. Please reach out to us with any additional questions or issues and we’ll be happy to help.