From the desk of Charlie McCullough
I have never been described as a planner. Most people would consider me a procrastinator. This year, however, I got an early start on one of my least favorite jobs – getting the paperwork together for taxes. I organized my receipts, and put everything into one neat and tidy little package. I was so proud of myself…until I went back to double check everything.
To my horror I realized that I actually wasn’t ahead of the game. In fact, I didn’t even have all the necessary documentation back from my investments. I was missing one very crucial piece of my tax puzzle – a 1099 form for one of my key investments. So I raced to the calendar to check the date…February 4? How could that be? I thought these forms are due on January 31, yet here I sit four days later without the proper documentation to take into my accountant.
So, I gave the friendly folks at Financial Fiduciaries a call and they assured me that all was okay. It seems that the reporting date for some key investment funds has been pushed back to mid-February. This means that I may not see my paperwork until the end of the month. It appears that changes in the tax laws have created additional reporting requirements on the part of the brokerage houses.
Investment companies receive this necessary tax information from multiple issuers of stocks and bonds. They are then required to break this data into the different types of dividends and interests as noted on the investor’s 1099s. In recent years, many of the forms that were sent out in time to meet the January 31 deadline were incorrect and needed to be revised after the fact.
So the bottom line…I am as prepared as I can be right now, but I will need to wait a few more weeks before I can visit my accountant.