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1099 Forms for 2015 Tax Year

We want to reprint this recent bulletin we received from Charles E. Schwab regarding the mailing dates of 1099 forms this year and the reasons that some clients may receive one, or even two corrected 1099s. An insert in your January statement had similar information but we wanted to be sure this was available to all our clients.

“Schwab has changed the 2016 mailing dates for the 1099 Composite and Year-End Summary tax report. By moving the mailing dates out slightly, we are trying to minimize the number of corrected Form(s) 1099 that may be delivered to your clients.

We are implementing this change due to an increase in the number of mutual funds and ETFs that reclassify their income in late January and early February. Schwab is required by the IRS to send out corrected 1099’s when we receive updated information from fund companies or other issuers.

 Original Form 1099

Please note that Form 1099 mailings are scheduled for two dates, depending on the types of investments your clients hold:      

•By early February 2016, mailings will go out for accounts for which we have all necessary tax information.

•In late-February 2016, mailings will go out for accounts that contain at least one investment for which the issuer can’t provide information in time for the earlier mailing.

(Your clients received information regarding the new mailing dates in their December statements delivered in early January.)

 Corrected Form 1099s

If your clients need corrected 1099s, they will be sent beginning in early March.

There are two reasons an investor may receive a corrected Form 1099:

•One or more issuers of the securities held by the investor may not have provided the investor’s tax information before Schwab mailed Form 1099.

•Certain income (e.g., dividends, capital gains) on securities an investor holds may need to be reallocated by the issuer after the IRS Form 1099 mailing deadline.

If we receive updated information from issuers of securities held after the original Form 1099 has been mailed, Schwab is required to send a corrected tax form. Please be aware that the issuers of securities may reclassify income any time after we’ve mailed the original Form 1099. Investors may receive more than one Corrected 1099. “

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