Possible delays on forms mailings, may delay your filing.

Are you waiting to receive your Form 1099 tax statement for investment funds? In an effort to limit the number of corrected forms typically mailed each year, the IRS has granted an extension for the mailing of these tax documents. As a result, your Form 1099 will be mailed by March 14.

Income taxes

Photo courtesy of Alan Cleaver(CC Attribution)

Although mailing by March 14  is later than usual, this provides you with two important advantages:

·       Your Form 1099 will reflect the most up-to-date and accurate accounting of your investment income for tax filing purposes. It is not uncommon for some ordinary dividends to be reclassified as capital gains or qualified dividends at a later date. Sending the Form 1099 later may prevent some filers from having to refile because they receive a corrected Form 1099.

·       Your chance of receiving two 1099s—one original and a corrected one later on—will be reduced. This should help ensure that you will not have to refile your tax return.

You can always call your financial institution to check their timeline. They may be able for download before they get mailed.