What to Expect This Tax Season

Contributed by: Melissa Joy, CFP® Melissa Joy

The Center’s Commitment to You

At The Center, our goal is to provide exceptional service and meet your needs as efficiently and effectively as possible. We offer the following commitments and services related to the tax season:

  • Consistent communication about timelines for tax document receipt, as that information is available.
  • Assistance in understanding your tax-related questions and coordination of information, such as cost basis.
  • Coordination and communication with CPA’s and tax preparers upon your request. We’ve found that sharing and collaborating with your other trusted advisors can have substantial benefit to you.
  • Financial planning and investment management integrated with perspective on tax consequences. If you would like to review or discuss our approach to taxes as it relates to your personal situation, please let us know!
  • There is still time to make to contributions to IRA, Roth IRA, and SEP IRA’s until April 18th. Please contact us if you need assistance or would like to discuss this further. Here is a link to tax information for the 2015 tax year.

As you complete your taxes for this year, a copy of your tax return is one of the most powerful financial planning information tools we have. Whenever possible, we request that you send a copy of your return to your financial planner, support planner, or client service manager upon filing. Thank you for your assistance in providing this information which enhances our services to you. If you would prefer that we request a copy of your returns from your tax preparer and have not already, please complete a Consent to Disclosure of Tax Return Information Form and return it to our office.

IRS Filing Dates

  • April 18, 2016 – This year, April 15 falls on a Washington D.C. holiday (Emancipation Day), which moves the filing deadline to April 16. Since the 16th is a weekend, the following Monday is your filing deadline.
  • October 15, 2016 – Last day to file for those who have requested extensions.
  • Tax Estimates are due: April 18th, June 15th, September 15th, January 15th

Raymond James Tax Reporting

Up to date information on Raymond James Tax Reporting can be found at this tax resource page. This page includes information for TaxACT, TurboTax, and H&R Block users and tax download instructions.

If you have Investor Access through Raymond James, you can view tax reports along with statements for all of 2015 by logging into your account. These documents are available as Adobe PDFs for printing and saving. The information will be archived for 14 years.

Beginning with tax year 2015, as an added convenience, you can choose to receive your tax documents electronically. To go paperless, enroll or log in to Investor Access, Raymond James’ secure system for accessing your account information online.

With electronic delivery, you’ll have 24/7 access to your client documents as soon as they become available. Not only will you be able to view your documents sooner, but also, your documents are archived together in one secure location so they are easy to find when you need them.

Tax documents available electronically include the IRS Composite Form (1099-B, -DIV, -INT, -MISC, -OID) and IRS Forms 1099-R and 5498.

Mailing Schedule & Availability for Raymond James Forms

  • January 31st – Mailing of year end packets 1099-R and 5498s, if applicable
  • February 15th – Mailing of original 1099s
  • February 28th – Mailing of amended 1099s and those delayed due to specific holdings
  • March 15th – Final mailing of any additional original 1099s as well as continued amended mailings as needed

Information on Amended and Delayed Documents

The IRS has granted Raymond James, along with several other broker/dealers, a reporting extension that allows them to delay 1099s for those clients who hold what are considered “pass-through” vehicles for tax reporting purposes. The goal of this extension is to provide an up-to-date 1099 that otherwise might be amended causing confusion or the need to refile.

As a reminder, Raymond James is required by the IRS to produce an amended 1099 if one of the following adjustments is received after the original 1099 has been produced:

  • Income Reallocation: Certain investment types, including regulated investment companies, mutual funds, real estate investment, unit investment, grantor and royalty trusts, exchange traded funds, holding company depository receipts, and equities often adjust declarations of income paid during the previous tax year after year-end. These updates are referred to as income reallocations and may result in a more favorable tax treatment.
  • Adjustment to Cost Basis: Raymond James is required to report the adjusted cost basis of sold covered securities to the IRS on Form 1099-B. Because cost basis reporting is mandatory, adjustments to reporting result in amended 1099s, which will be mailed as needed. Visit the Cost Basis Legislative Resource Center for more cost basis resources.
  • Incomplete or Incorrect Reporting on Original 1099: If a taxable event was not reported or was incomplete on the original 1099, an amended 1099 is required. This includes adjustments received after the original 1099 was produced.
  • Other Adjustments: In addition, processing of the following often result in delays in correct information being provided to Raymond James:
    • Original issue discount bonds (including select municipal bonds)
    • Some cost basis adjustments
    • If there are changes made by mutual funds related to foreign tax withholdings
    • Tax-exempt payments subject to alternative minimum tax
    • Distributions from U.S. Treasury obligations and select mortgage backed securities payments (45 day delay bonds)

As always, we are here to answer any questions that you or your tax preparer may have. Just let us know if we can be of assistance.

Melissa Joy, CFP® is Partner and Director of Investments at Center for Financial Planning, Inc. In 2013, Melissa was honored by Financial Advisor magazine in the Research All Star List for the third consecutive year. In addition to her contributions to Money Centered blogs, she writes investment updates at The Center and is regularly quoted in national media publications including The Chicago Tribune, Investment News, and Morningstar Advisor.

Financial Advisor magazine's inaugural Research All Star List is based on job function of the person evaluated, fund selections and evaluation process used, study of rejected fund examples, and evaluation of challenges faced in the job and actions taken to overcome those challenges. Evaluations are independently conducted by Financial Advisor Magazine.

Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.