We want to ensure that your tax preparation goes as smoothly as possible. That’s why we’re sharing the Raymond James updated schedule for mailing tax documents. You’ll also find links for some services that can help make your filing easier.

New mailing dates

Beginning with tax year 2011, Raymond James will mail 1099s in accordance with the IRS mailing deadline of February 15. The additional time is needed to support the cost basis reporting requirements resulting from the Economic Stabilization Act of 2008.

Raymond James Bank 1099 forms will continue to be mailed by January 31.

Extension for clients with certain investment types

To capture correct data on original Composite Statement of 1099 forms and minimize the number of amended forms you receive, we will extend the mailing date of original 1099s until March 15 for clients who hold particular types of investments, specifically those that are tax reporting pass-through vehicles.

Securities that traditionally have late reporting and/or income reallocation (a practice in which companies adjust the tax characterization of income paid during a tax-reporting period) include:

• Regulated investment companies (mutual funds)
• Real estate investment trusts (REITs)
• Widely held fixed investment trusts (WHFITs) such as unit investment, grantor and royalty trusts
• Holding company depository receipts (HOLDRs)

Additionally, beginning with the 2011 tax year, 1099s with anticipated cost basis adjustments will also be delayed until March 15 to avoid amended statements. 

Amended 1099s

Even after delaying statements, issues such as late reporting and late income reallocation can still occur.

The IRS requires us to produce an amended tax statement if notice of such adjustments is received after the original 1099 has been produced. There is no cutoff or deadline for amended 1099s.

The following may result in amended 1099 forms:

• Late income reallocation
• Corrections 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

Due to the IRS’s mandatory cost basis reporting requirement it is expected that clients will see an increase in amended 1099s for 2011.

Given the expected increase in both delayed and corrected 1099 tax forms, you should consider talking to your tax advisor about whether it makes sense to request an extension with the IRS to give you additional time to file your tax return, particularly if you hold any of the aforementioned investments or if you sold securities, either through a direct trade or indirectly through a corporate action or any other event during 2011.

If you receive a corrected 1099 after you have already filed your tax return, you should consult with your tax advisor about the requirements to refile based on your individual tax circumstances.

Changes to the 1099-B

The IRS has required additional disclosure on the 1099-B form for 2011. In response to cost basis legislation, the revised 1099-B has been expanded to include cost basis information for both covered securities (reported to the IRS) and uncovered securities (not reported to the IRS) sold or exchanged during 2011.

The Form 1099-B previously reported only gross proceeds from closing transactions (e.g., sales). Additionally, the supplemental Realized Capital Gains/Losses statement is being replaced by the 1099-B.

For uncovered securities, cost basis is provided for informational purposes only. Cost basis, for uncovered securities, may have been estimated by you or your advisor, or may have been obtained from third-party sources. In these instances, please keep in mind that Raymond James cannot guarantee its accuracy.

New for tax year 2011, the detail reported on the Form 1099-B will now flow through to the IRS form 8949, which needs to be completed by the taxpayer. The Schedule D will now function as a summary of all capital gains transactions, while individual investment sales are to be detailed on the new Form 8949.

Changes of note:

• The new 1099-B goes into detail, broken down by category (long term, short term), tax lot, covered/uncovered, reportable/non-reportable.
• There will be new indicators identifying cost basis accounting methods.
• There will also be new endnotes, footnotes in relation to cost basis.

Raymond James and its affiliates do not provide legal, estate planning or tax advice, and nothing in this communication should be construed as legal, estate planning or tax advice. You should consult with and rely solely on the advice of your own legal, estate planning and tax advisors prior to taking any action with respect to any matter addressed in this communication.

© Raymond James Financial, Inc. All rights reserved.