Tax Season 2010
 
For our clients — First, thank you so much for your patience through our change of broker-dealers in 2009. Because of those changes and assets transferring between various types of accounts, many of you have expressed confusion regarding the entities from which you can expect to be receiving 1099’s. Hopefully, the following information will help clear some of this up.
 
1099’s
 
1099’s are sent out for qualified / retirement accounts (IRA, 401(k), 403(b), etc.) only if you have taken distributions or have rolled assets into the account. You do acknowledge a rollover (1099-R) on your tax return, but your taxes are not effected.
 
1099’s are sent out for non-qualified accounts ( individual, joint, trust, etc.) if you received dividends, capital gains, or interest and if you have bought or sold securities or mutual funds.
 
Investment Companies & Brokerage Firms
 
Brokerage accounts — you may receive a 1099 from the following entities:
     ♦  AIG Financial Advisors
     ♦  SagePoint Financial
     ♦  Associated Securities Corp. (ASC)
     ♦  LPL Financial
     ♦  Charles Schwab & Co.
 
In addition you may receive a 1099 from a Mutual Fund Company or REIT. We will not list them all, but mutual fund companies include those such as American Funds, SunAmerica Mutual Funds, Davis Funds, Oppenheimer, and Putnam Investments. 
 
Best Practice
The best practice is to keep and deliver whatever you receive in the way of year-end statements and/or 1099’s to the person who is doing your tax return. That person should be able to sort out what is applicable. Please know that between these companies there is no duplication. At all times one entity or another held your account. All 1099 information you receive needs to be entered on your tax return.
 
No matter what the case, it is always best practice to keep your quarterly and year-end investment statements.
 
Timeframe
The general deadline investment companies and brokerage firms have been given to send out 1099’s and 1099-R’s is February 1st. LPL (and some others) have been given an extension on sending out 1099’s until February 15th.