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Tax Center

Please note: We provide this for informational purposes only. We do not provide tax advice.

Where can I find my client’s Tax Forms (such as, Forms 1099, 5498 and 8949)?

All tax forms can be found in your client’s online Tax Center:

Tax documents are organized by calendar year. You can view other years by selecting the desired year from the View Reports menu.

What is a consolidated Form 1099?

A consolidated Form 1099 is produced for taxable accounts and details the income associated with that account for a particular year. Our consolidated 1099 Form is a single document with sections for the IRS Forms 1099-DIV, 1099-INT, 1099-MISC, 1099-OID and 1099-B. The first four 1099 documents are found on page one of the consolidated Form 1099. These, along with the 1099-B pages which list security sales and other proceeds, contain account data that is furnished to the IRS and must be included in your client’s tax return.

Which account types do not receive Consolidated Form 1099s?

The following accounts will not receive a Consolidated Form 1099:

  • Accounts with no security sales and less than $10 in dividend and interest income.
  • Non-taxable accounts (including IRA accounts which receive Form 1099-Rs, if applicable).
  • Subchapter-S corporate accounts which will receive a Form 1099 that only contains 1099-B information detailing the proceeds for covered securities that were sold during the year.
  • Subchapter-C corporate accounts which will receive an informational summary document that looks very similar to a 1099, but does not contain information that is reported to the IRS.

What is Form 8949?

Form 8949 is a listing of your client’s long and short term, reportable and non-reportable capital gains. We may generate 4 versions of IRS Form 8949, reporting sales of securities with short and long-term capital gains, further sub-divided into sales with cost basis reported to the IRS, and sales without cost basis or sales where cost basis is not reported to the IRS. Each of the 4 versions of this Form is necessary to complete Schedule D of your tax return. Please refer to IRS Form 8949 for additional details.

What is a Form 1099-R?

Form 1099-R reports distributions of $10 or more from an IRA. This information is furnished to the IRS and must be included in your client’s tax return. Reportable distributions include normal, premature (with or without exception), death and disability distributions. Also reported are Roth conversion distributions, recharacterization distributions and correction of excess distributions made from your client’s Traditional, Roth, SEP, SIMPLE and Beneficiary IRAs.

Form 1099-R also includes any federal and state tax withholding amounts actually withheld.

What is a Form 5498?

Form 5498 reports the fair market value of your client’s IRA (as of December 31) and any reportable contributions made to their IRA in that calendar year.

Reportable contributions include rollovers, contributions, Roth conversion contributions, and recharacterization contributions made to your client’s Traditional, Roth, SEP, SIMPLE and Beneficiary IRAs.

When will my client receive their Form 1099?

Generally Form 1099s are posted in your client’s Tax Center around the end of February.

Should my client check their Form 1099 before filing and are they ever amended?

Your client should check their Form 1099 before filing because amendments to Form 1099s are frequently issued, especially if your client holds REITs, RICs, ETFs or mutual funds. There may even be multiple amendments made to your client’s Form 1099 before the tax filing deadline. Therefore, we strongly suggest that your client waits until at least the end of March before downloading their Form 1099 in order to allow any reclassifications or corrections to their Form 1099 to occur.

Your client will be notified through the Message Center and emailed when their Form 1099 has been amended. We have no control over the reclassifications that cause 1099 amendments and your client may have to amend their return if they file early.

Will an amended Form 1099 require my client to re-download their gains and losses?

If your client receives an amended Form 1099-B, they will need to download the updated gains and losses report. We strongly suggest that your client wait until at least the end of March before they downloads their Form 1099 in order to allow reclassifications or corrections to occur.

Why does it look like sections are missing from my client’s Subchapter-S Corporate Account 1099?

As of the 2012 tax year, the IRS changed the reporting requirement for Subchapter-S corporate accounts. The 1099 for S-Corp accounts only contains the sales information (1099-B) as well as any withholding, if applicable. The sales data is only reported for covered securities that were sold during the tax year. This is the information that is required to be reported to the IRS.

Subchapter-C corporations will continue to receive ‘informational’ statements. These accounts have no data that is reported to the IRS but get a statement from us that looks like a normal 1099.

Are there foreign tax considerations?

Depending on the country of origin, many foreign securities held as American Depository Receipts (ADRs) have foreign taxes withheld at the source. We receive the net dividend and pay it to customer accounts. Account holders can receive a credit for the foreign taxes that were withheld. To facilitate this, foreign dividend payments are shown on Form 1099 with a breakout of any associated foreign tax that was withheld from the payment. The total foreign tax paid is listed on Page 1 of Form 1099, to be included on your tax filing. In addition, transactions in certain foreign securities may be taxed by foreign governments. Where applicable, we may pass this foreign transaction tax on to you.

How are Limited Partnership taxes reported?

Limited Partnerships distribute K-1s tax reporting forms directly to their limited partners (shareholders). Dividends from Limited Partnerships will not be reported on the 1099-DIV distributed by us. Our Form 1099 may contain a summary of any partnership distributions in a supplemental section.

K-1s are generally mailed by the issuer of the security or their agent in late February or early March (K-1s must be mailed to partners on record by March 15th following the close of the partnership’s tax year) unless an extension of time to file is applied for by the partnership, which is not uncommon.

What are covered and noncovered securities?

Covered securities refer to the securities acquired in taxable accounts on or after the effective dates shown in the table below. Securities acquired before the effective dates are called noncovered securities. Brokerages are responsible for reporting the total amount of cash paid by a customer, adjusted for commissions and fees from the purchase of the security for covered securities only (i.e., cost basis). If you acquired securities before they were considered covered, they may not have cost basis data, even if they are transferred to another custodian.

  Covered Securities Noncovered Securities
Equities Acquired on or after January 1, 2011 Acquired before January 1, 2011
Mutual Funds and Most ETFs Acquired on or after January 1, 2012 Acquired before January 1, 2012
Fixed Income, Options or Other Securities Acquired on or after January 1, 2014 Acquired before January 1, 2014