In a comment to my prior post about late forms 1099 and W-2, one of my readers (Thanks, Adam!) pointed out that brokers were sending notices about late forms as a result of a recent law. I posted about the new law in the comments but then thought it deserved its own headline – so here you go…
There is a law that allows brokers a few more days to issue forms 1099-B. The deadline is usually January 31 but has been extended to February 15. This is the deadline for mailing the forms, not receipt of the forms. But, since February 15 falls on a Friday, the deadline is even further extended to February 17 (the following Monday).
To be clear, the extended deadline only applies to forms 1099-B, which are forms by which brokers, including brokerage firms, mutual fund companies, and barter exchanges, report investment activities.
This does not allow companies an extension to issue forms W-2, nor any other form 1099, including Forms 1099-MISC. Those forms are still subject to the January 31 deadline. However, if certain information, such as interest usually reportable on Form 1099-INT is reported as part of a statement on Form 1099-B, the extension still applies.
You can read the official press release from the IRS on the IRS web site here.
FWIW, I don’t see why it was 1099-B’s that got the extended due date (unless it was for legislative expedience). The real problem, ever since the introduction of the 15% rate for qualified dividends under GW Bush, is the 1099-DIV. Brokers and mutual fund companies have had a horrible time with this provision. I think last year the funds I worked with didn’t get finalized 1099-DIV information sent out until mid-March.