Getting Ready for the Upcoming Tax Season

This information is not intended to be a substitute for specific individualized tax advice. We recommend discussing your specific tax situations with a qualified tax advisor.

Tax season is approaching and being prepared is the best way to make this tax season your easiest yet. In this document you will find important information and tools to help you get ready. As always, meeting with your financial professional early and often will ensure that all your questions are answered, so reach out to them today. 

Why are there different mailings for 1099-Consolidated Tax Statements?

During the 2023/2024 tax season, LPL will mail 1099 consolidated tax statements in multiple waves (similar to other major financial firms) to meet all IRS deadlines, reduce errors, and cut down on the need to mail corrected forms. 

See important tax season mailing dates below for a full list of mailing dates. Your original 1099 consolidated tax statement will be mailed shortly after we receive final income reclassification announcements from all securities held in your account. Timing of receiving final income reclassification data may result in your tax statement not arriving on the anticipated February date. In these cases, your 1099 tax statement will be mailed between February 16 and March 15, 2024.  

If your 1099 consolidated tax statement is not available on or before February 16, 2024, you’ll have access to a Preliminary 1099-Consolidated Tax Statement. This is an advanced draft only. Data may be incomplete and is subject to change. The preliminary 1099 should not be considered final and should not be used for the purpose of filing a tax return with the IRS or with any state or other regulatory agency. The preliminary form will be available electronically and won’t be mailed. You can access a preliminary 1099-consolidated tax forms statement in Account View or by reaching out to your financial professional. 

Income reclassification: What is it and what do I need to know? 

Income reclassification (sometimes called income reallocation) is an annual process where security issuers change the tax characterization of distributions that were paid during the tax year. Often, the result of income reclassification is a more favorable tax treatment. The income reclassification process takes place after the end of the tax year, during the first quarter, when security issuers announce their income reclassification for the previous tax year. The income reclassification process affects income distributions you may have received during the previous tax year. The IRS requires final income reclassification to be reported to you on Form 1099.  

Please note: Reclassification is an industry-wide activity. All financial industry firms receive reclassified data from issuers. 

Should I file an extension?  

It is always a good idea for you to maintain an open line of communication with your financial professional and your tax advisor throughout the year to ensure the best tax strategy and outcomes for you. This dialogue will help you decide if filing an extension is the best course of action. There are many reasons why filing an extension might make sense for you. For example, the volume of data or complexity of certain transactions inside or outside your account may require additional time to address. In addition, if you are expecting to receive your 1099 in the final mailing waves in March, it may be reasonable to consider filing an extension to allow sufficient time for your tax advisor to accurately complete your tax return forms. If you are unsure about your holdings, be sure to discuss them with your financial or tax professional. 

Corrected Forms: What do I need to know if I receive a corrected tax form in the mail? 

After your original 1099 tax statement has been issued, delayed reporting and reclassification from security issuers can sometimes occur, which may result in you receiving corrected 1099 statement. The IRS requires that a corrected form be issued for any adjustments received from the security issuers after your original tax form is produced.   

Security types most likely to reclassify are: 

• Regulated investment companies (mutual funds)

• Unit investment trusts (UITs)

• Real estate investment trusts (REITs)

• Widely held fixed investment trusts (WHFITs)

There is not an IRS cutoff or deadline for providing corrected 1099 forms. If you need to file an amended tax return, it’s recommended that you discuss the situation with your tax advisor prior to refiling so they can determine the best course of action based on your individual circumstances.  

For help answering tax season questions and finding additional saving opportunities, contact your financial professional. 

How to go paperless in Account View 2.0 

There are several benefits to you for going paperless with your important documents. 

• Get faster access to your documents,including tax forms.

• Peace of mind.eDelivery is more secure.

• Get convenient access to important documents from one location, anytime, anywhere.

For directions on how to set your tax forms to be paperless, please see the below steps. It takes less than 5 minutes to get setup. 

1. Login to your account www.myaccountviewonline.com. If you don’t have an Account View profile, you can sign up for one at the link above.

2. Once you are logged into your Account View profile, click on your name in the upper right corner of the screen. Select “Preferences” to navigate to your paperless settings.

3. From there you can choose to either go 100% paperless for all eligible documents or pick and choose which documents you receive by mail delivery.

Authorized User access in Account View 2.0 

You can provide an authorized user access to your Account View profile. This is a view-only access to any user you authorize. Who would you want to give access? Perhaps a significant other to view account information or your accountant, so they can download tax statements.  You control this setting within your user profile preferences.  

Tax preparation software 

If you use TurboTax or H&R Block, you’ll be able to import the information shown on your original or corrected 1099 tax information statement directly into the software. To upload your tax data into the software, you’ll need your full 8-digit LPL 

account and 11-digit Document ID listed on your tax statement. Forms will be available for download once your tax statement is available. We recommend you wait to download your tax statements until you have received all tax statements in the mail.  

Important tax season mailing dates 

Becoming familiar with the mailing schedule is one of the most important ways to stay organized for tax season. During the 2023/2024 tax season, to meet all IRS deadlines, reduce errors, and reduce the need to mail corrected versions, LPL will mail the 1099 Consolidated Tax Statements in multiple phases. Keep this chart handy to see when your final forms for tax year 2023 will be ready. 

For more information on IRS tax filing or extension deadlines, see IRS.gov. 

Please reach out to us at RWM Financial Group. We look forward to the opportunity to extend our services and to help position your investment portfolio for long-term success.

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