Way OT. 1099's from the stock broker

fixerupper · Feb 17, 2014

This is as far away from tractors as it comes, but I know some of you have investments and get a 1099 for the earned income. We farmers pay our taxes by March 1, which is coming up. We saw the tax accountant three weeks ago but he can't finish the tax work until we get all of our 1099's in order. We have all of them except for the one from the brokerage. Went to the local office for that firm a week ago to try to speed things up and the secretary said the firm won't have the 1099 ready till sometime in march, but they do have an electronic form that will come out in mid-February. She then said this February electronic form will probably list the correct amount but it might be changed before the mailed form comes. I did get on their website and got the electronic 1099. It has the amounts listed and it doesn't say anything about this form being subject to change. Do any of you guys and gals have this problem? I thought ALL 1099's had to be out by the last of January. Jim

Dave H (MI) · Feb 17, 2014

Brokerage firms have been given some leniency on the due date from the IRS going back a couple of years now. At least a preliminary 1099-B needs to be available by February 18 this year. What happens with MOST of our clients who are heavily invested is that the brokerage sends a corrected form later in the season. We hold tax returns when we think this might occur as some of these 1099's can run 30-100 pages and it is a problem for us. This is the way it is in the world today. You could always invest it all in MM and make little or nothing. You have to work with what you have.

fixerupper · Feb 17, 2014

Thanks for the quick reply Dave. Most of it is mutuals so there's not a whole lot of immediate income involved, but I like to just have things over and done with by the tax deadline. Jim

Anonymous-0 · Feb 17, 2014

Jim, what is taxable income to you from a mutual fund can get pretty technical. It depends on the underlying securities the fund buys. There isn't a way to do it quickly and accurately at the same time. It's one or the other.

IaGary · Feb 17, 2014

Yup same problem here. Makes it even tougher on
time if you are going to be gone at the end of
February into March.

Finally got the last 1099 Friday.

Why do farmers have to have theirs sent by 1/31
but others don"t?

Gary

fixerupper · Feb 17, 2014

Gary, in a week we are indeed leaving for awhile so we have to get our affairs in order soon. Taxes and land rent all due by March 1st. It's a viscous cycle; 1099 to the landlords, 1099's coming in for taxes, pay taxes, pay rent. Oofda!!! Jim

rrlund · Feb 17, 2014

I got everything from Edward Jones a few weeks ago.

Tom in TN · Feb 17, 2014

fixerupper,

I'm not aware of tax returns needing to be submitted by March 1. I know that corporations are due by March 15, but sole proprietorships, partnerships, and LLCs are part of the individual owners' returns, so they aren't due until April 15.

What kind of structure do you have for your farm that requires submission by March 1?

Thanks for any information. I hope I'm not doing something wrong.

Tom in TN

fixerupper · Feb 17, 2014

I'm just a plain old unincorporated farmer and my income is practically 100% from farming. I don't estimate or pay quarterly and there's no income from wages so that puts my tax due date March 1. The USDA used to be the slow one getting the 1099's out on farm program payments but they've cleaned up their act a little. Jim

Hay hay hay · Feb 17, 2014

Maybe you should go on vacation at a different time of the year? Nice problem to have.

I thought brokerage 1099's had to be out in Feb.

fixerupper · Feb 17, 2014

Marilyn wanted to take off a week later but her brother in Mississippi said he and his wife would take us to the machinery show in Memphis which is on the weekend of feb 28, Mar 1, so that's the determining factor. Anyone here going to that show? Maybe we could meet up. Oh yeah, come to think of it, crop insurance signup deadline is March 15 here in these parts. Better be home by then! Jim

Frank 41 · Feb 17, 2014

We are in the same dilemma. We had trouble getting K1s also. Everybody thinks that we farmers have to pay April 15 instead of March 1.

IaGary · Feb 17, 2014

Tom do you pay quarterly estimates or is a majority of your income off farm?

If so you may not be due till 4/15.

Gary

Tom in TN · Feb 17, 2014

fixerupper,

Thanks for the information. I'd never before heard of the special plan for farmers and fishermen that allows you to bypass quarterly estimated tax submissions.

Most of my income is from off the farm, so it doesn't apply to me, but it's really interesting to know about.

Tom in TN

Mike (WA) · Feb 18, 2014

1099 S, reporting real estate sales, must be out by Feb. 18. A lot of the various 1099's are the same, but not sure about investment income. I have the IRS circular at work- will try to remember to look.

MarkB_MI · Feb 18, 2014

1099s are always subject to change. The brokerage is required to provide you a 1099 before February first, but they can send you an updated one later. And 1099s aren't due to the IRS until February 28th, so that gives them a full month to change the 1099 and still get it to the IRS on time.

Go ahead and use the 1099 you have in hand to do your taxes. Chances are it will be very close to the final one. If not, well either you update your return before you send it in, or you file an amended return.

MarkB_MI · Feb 18, 2014

Tom, it's not really correct to say that farm returns are due March first. The deal is this: Farmers don't have to pay estimated taxes, but only if they file their return and pay their taxes by 3/1. If they miss that date, they're subject to penalties for underpayment of estimated tax. I think the rationale is that farmers typically don't get paid for their crops until late in the year, so they get a break on estimated tax. Now if a farmer wants to pay estimated tax, they can file April 15th just like everybody else.

IaGary · Feb 18, 2014

How or why can they change them?

Whatever the figures were on the first of the year is what they were.

Just wondering?

Gary

MarkB_MI · Feb 18, 2014

All they have to do is to send you a new 1099 with the "corrected" box checked. Why? Because they made a mistake.

Mike (WA) · Feb 18, 2014

Per the IRS booklet, 1099-B is to be sent to recipient by Feb 15 (18th this year, because of weekend and holiday). 1099-PATR, for patronage dividends and co-op distributions, are to be sent to recipients by Jan. 31.

Like the others, I'd use what I had- in your case, the electronic 1099-B. If it changes by the time you get the printed one, you could either file an amended, or just say tahellwidit.

fixerupper · Feb 18, 2014

Tahellwidit is my plan of attack. I don't feel I should go to more expense and bother because the brokerage firm can't get their act together sooner. This 1099B lists a very small amount that is almost unreportable. Thank you everyone for the information. Jim

Way OT. 1099's from the stock broker

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