Snyder and Associates


Tax Byte

Just when you thought tax season was over.....

So you were proud of yourself for getting your tax return filed on time and just when you thought you could move on, you receive a corrected 1099 or some other tax form for the prior year. Frustrating, for sure.  Although the brokerage firms try to send complete and accurate 1099 forms, changes in the classification from mutual fund companies and other recharacterizations may result in the issuance of a “corrected” Form 1099-B.  It is important to discuss these with your tax preparer.  If the change is negligible, amending your returns may not be necessary.  The IRS may also have corrected for any mis-matched items.  But it could also be necessary to amend your federal and/or state return to avoid tax notices in the future.

Another form typically received this time of year is Form 5498.  The timing of this mailing often causes concern too because it is received after the tax returns have been filed. Not to worry, this is the normal time for this form to be issued, and most likely there is nothing to do. Taxpayers have until April 15th to make contributions to their individual retirement and/or health savings accounts and still count them on the prior year’s return. Form 5498 reports any contributions made for the prior year to these accounts, including ones made by the April 15th deadline; thus it cannot be prepared until the April 15 deadline has passed.

If you receive tax forms after you have filed your return, always forward them to your tax preparer to make sure there is nothing to do.

Thanks to all our clients and business associates for another successful tax season!  While some firms struggled with Congress’s late actions that delayed tax software updates and electronic filing submissions, we tried be proactive and kept clients informed along the way.  We worked through the challenges together and finished another successful tax season. As always we appreciate your confidence in us and any referrals you may make.

Back to Tax Byte archive