Tax Season is just week ways, and we wanted to provide some guidance on what to expect and how to plan ahead:
The Internal Revenue Service announced that the nation's tax season will start on Friday, February 12, 2021, when the tax agency will begin accepting and processing 2020 tax year returns.
April 15 falls on a weekday in 2021, and it's not a holiday this year, so the filing deadline for your 2020 personal tax return is indeed April 15, 2021.
Expect delays in mailings due to problems with US Postal Service.
Some investment firms have notified us that they will be sending out 1099s in a staged mailing, so you may get 1099s at different mailing intervals.
Expect the usual cycle of corrections to 1099s for investment accounts.
K-1s, if applicable to your investment portfolio holdings, are always later than 1099s.
With that in mind, you should not file immediately to help reduce the need for filing an amended return.
As in past years, we suggest you make an appointment with your tax preparer, providing all documents so they can begin your return preparation and then….wait until early April to actually file.
If your accounts transitioned from Pershing/TD Ameritrade/Fidelity in 2020 to LPL, you will definitely receive 1099s from the former custodians and possibly from LPL (depending on the timing of your new account opening).
Special situations due to COVID CARES ACT - if you received a COVID relief check or if you elected to rollover your 2020 RMD, make certain you discuss these situations with your CPA or tax preparer to ensure proper reporting and taxation.
Remember that we cannot provide any information to your tax preparers without your written authorization, so please call us directly if you have any questions.
We look forward to the opportunity to assist you. Happy filing!
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