The IRS is at it again. The IRS changed the format for 1099’s (investment account transactions) and many 1099 providers discovered the change too late to make the January 31st deadline for mailing the 1099’s. Many providers received an extension of time to provide them until February 15. You should be receiving these “late” 1099’s this week.
Additionally, the IRS was late to release the final version of several forms needed by tax prep software companies and tax preparers. And, the IRS was late in opening its doors to permit taxpayers to actually file their income tax returns.
Additionally, many investors have added Master Limited Partnerships (MLP’s) to their portfolio. The investment returns for these MLP’s are NOT reported on the 1099’s. Instead MLP earnings are reported on Schedule K-1 which is issued in early March (normally). We recommend NOT waiting for your K-1’s before giving your income tax information to us to prepare your income tax return. We prefer to get started as soon as possible and we will download your K-1 information for you, as soon as it is available.