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2016 Tax Preparation & Form 1099 Mailing

February 1, 2017
Letters to True Wealth Design clients regarding their 2016 tax return preparation have been sent. We will also be posting a report to your client vault this week, specify any potentially tax-deductible fees. Due to a reporting limitation, the report may be blank rather than not provided. If the report is blank, there are no deductible fees for the 2016 tax year.  

1099 Mailings 

We wanted to provide you the specific details regarding the Form 1099 tax reporting schedule. As in past reporting years, the goal is to provide the information as early as possible, which is directly based on the specific holdings in an account. By January 31, 2017, the first group of Form 1099 tax statements will be available online through NetX360 and NetXInvestor. Be aware that some issuers of securities do not make their final distribution information available until after January 31st.
For tax year 2016 for Form 1099 statements, here is the reporting schedule in 4 phases:
  • January 31st, Phase One - Form 1099 statements will be available online and also mailed for accounts with holdings and income that typically do not require reclassification or additional information from issuers. Generally, this includes accounts holding fixed income (debt) or equity-only investments and options.
  • February 15th, Phase Two - Generally, this group includes issuers of mutual funds, certain unit investment trusts (UITs), real estate investment trusts (REITs) and certain equities, because the issuer provided their final tax information after the January 31st reporting group. Pending 1099Notices will be available for accounts where we are awaiting data from issuers. Accounts that hold positions for which issuers have not provided final 2016 tax information will receive a Pending 1099 Notice. This will identify the holdings impacting the availability date of your Form 1099, and it will provide the anticipated completion date. Accounts that have already received Form 1099 will not be sent this notice.  February 15th is also the date for revision reports for Form 1099s originally included in Phase One, as required.
  • February 28th, Phase Three - Form 1099 statements will be available for accounts for which we can now include information that was previously pending income reclassifications from issuers of mutual funds, REITs and certain equities, because the issuer or trustee has provided final tax information. Generally, this includes remaining mutual funds, REITs and certain equities. February 28th is also the date for revision reports for Form 1099s originally included in Phases One and Two, as required.
  • March 15th, Phase Four - Form 1099 statements will be available for all remaining accounts, regardless of whether pending income reclassifications for the account’s income have been received from issuers. Generally, this includes accounts holding complex non-equity securities, such as real estate mortgage investment conduits (REMICs), widely held fixed investment trusts (WHFITs) and some UITs. March 15this also the date for revision reports for Form 1099s originally included in all previous phases, as required.
Corrected 1099 Forms Will Be Mailed as Needed
Clients may receive a corrected Form 1099. The IRS requires financial organizations to send corrected forms with revised information as it becomes available. There are several possible reasons for sending a Corrected 1099. 1) Issuers of securities held in the account may provide additional information after the initial Form 1099 was completed; 2) Securities held in a mutual fund you own may provide updated information to the fund company which must then provide the new information to its shareholders; 3) Tax authorities or auditors may require issuers to reclassify income differently than originally reported, which requires a new 1099 report to be sent to shareholders. 

Want it faster? Electronic Delivery of Form 1099
Enrolling in e-delivery will provide faster access to your tax statements. Log in on NetXInvestor or use our E-delivery Form to set up E-delivery.


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