TAX INFORMATION
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We are committed to help you get through tax time with the information you and your CPA need to expedite the investment related portion of your tax return. Due to new regulations, there are significant changes to the reporting of your tax information by the custodians
Schwab Information
Schwab will send you by mail a 1099 on each of your taxable accounts by January 31st.
You may get a 1099-R on an IRA account if you have taken IRA distributions out of the account.
Schwab may send you revised 1099’s as they get corrected. This is pretty typical in the industry as various investments re-characterize certain items.
We have arranged with Schwab to send you by mail in February a Year-End Gain/Loss report which is for any taxable account you have at Schwab. This report is not sent to the IRS and reflects investment cost basis which is computed using a high cost basis. This is a method that will help minimize your tax liability. We are preparing reports that contain the same information as your cost basis report and are designed to facilate preparation of your Schedule D. If your CPA requests it directly from us, we can also provide the IRS formatted Schedule D.
Here are pdf brochures from Schwab describing some of the reporting changes:
FOLIOfn Information
FOLIOfn will not send you any mail directly except if you have taken IRA distributions, then you would get a paper 1099-R from them.
For your taxable accounts at FOLIOfn, we will internally generate the information you need and will send it to you by March 15th. Keep in mind that some of this information is also available on line from FOLIOfn at any time and the 1099’s will be available on line around Mid-February. There is a likelihood that the 1099 information might get slightly revised and we will forward updates as needed.
You will get from us a 1099 Report as well as the Cost basis information in a format that can be attached to your schedule D thereby saving you or your tax preparer quite a bit of time. If you have selected our paperless delivery option, the reports will be placed on the Secure Service Delivery Platform on line, accessible under the client center on our website as well as mailed to you. Once you have received all the information, you will need to provide it to your tax preparer. If you have given us written authorization to discuss your situation with them, we will be happy to assist them with the process if they contact us.
Here are pdf brochures from FOLIOfn describing some of the reporting changes:
IMPORTANT NOTE
It is likely that there will be revised tax information sent to you up until early April. Typically the revisions are relatively small. This is an industry wide issue. Certain accounts may also receive K-1 tax reporting which is usually sent in late March. We strongly advise that you wait until the first week of April to actual file your return in order to minimize the chances of having to file an amended return.
In January, we will send a copy of this letter to your tax preparer if you have given us authorization to contact them. If you wish to update your tax preparer information please call us at 1-800-954-3724 or email us at taxinfo@ifrahfinancial.com
Ifrah Financial Services, Charles Schwab and FOLIOfn do not provide tax advice and this information should not be construed as such. Please consult with your tax advisor about your particular situation.