A new law, enacted in the Fall of 2008,
changed the deadline from Jan. 31
to Feb. 15, when brokers, including
brokerage firms, mutual fund companies
and barter exchanges, must furnish
year-end Forms 1099-B to their customers.
Where a broker furnishes these forms
by mail, this means that the forms must
be mailed, not received by that date.
The announcement went on to say ...
Because Feb. 15 falls on Sunday in 2009,
and Monday, Feb. 16 is a federal holiday,
the deadline is Feb. 17 this year. In
addition, the IRS said earlier this month
that for calendar-year 2008 reporting, the
Feb. 17 deadline also applies to other tax
information that brokers report to their
customers, including such items as interest
and dividends, on a combined year-end
This change is designed to make it
easier for brokers to provide
investors with accurate year-end
statements on stock sales and other
transactions. Inaccurate year-end
statements that have to be corrected
later often force investors to file
amended individual returns.
In its 2006 annual report, the
Information Returns Program Advisory
Committee (IRPAC) recommended
changing this deadline from Jan. 31
to Feb. 15. The report noted that,
“Form 1099 reporting has become very
complex over recent years. As a
result, many broker dealers are
currently experiencing 20% amended
Forms 1099. There is insufficient
time to make the necessary changes
in January, verify the data, print
the forms and mail them by Jan. 31.”
IRPAC is a federal advisory
committee that advises the IRS on
issues related to information
returns, such as Forms 1099.
The long-standing Jan. 31 deadline
for providing other year-end forms
remains unchanged. However, because
Jan. 31 falls on Saturday,
employers, banks and other
businesses have until Monday, Feb. 2
to mail or otherwise make available
various 2008 year-end tax
statements. This includes forms in
the W-2, 1098 and 1099 series.
Since the entire objective of this
change was to improve the accuracy of
the 1099-B reporting document, and IRPAC
stated that the error rate of the forms
prior to this change was 20%, I propose
TIGTA (Treasury Inspector General for
Tax Administration) should conduct a review
to see if this change accomplished that purpose.
If the change did not accomplish its goal, then
the deadline should be reinstated to January 31.
“Too often, changes are implemented to fix things ... then never followed up on to see if they worked. If they did not work, why leave them in place? Most changes have a domino effect, and in this case, our ten week window has been reduced to eight weeks.
Gregory J. Cook, EA, CPA+
Cook and Co., Enrolled Agents are licensed by the U.S. Treasury Department
Accredited Tax Advisor
Past President Alabama Society of Enrolled Agents
Past President Alabama Association of Accountants
secure email 1-800-551-6253 voice mail 117
to represent taxpayers before the Internal Revenue Service (IRS). Greg Cook is a
Certified Public Accountant (CPA) licensed by the states of Alabama and Tennessee.