1099 Consolidated Statements
In an effort toward limiting the need for revised 1099s, LPL Financial will again mail the 1099 consolidated statements in four phases as noted below.
1099R forms are mailed out. This includes all retirement accounts that occurred a taxable event in 2016 (for example, a required minimum distribution). The first wave of 1099 consolidated forms will also be mailed out. This includes accounts with the simplest tax information and are not subject to income reclassification.*
Second wave of 1099 Consolidated mailed out, including accounts that hold securities subject to possible income reclassification.
Third Wave of 1099 Consolidated mailed out. This includes accounts subject to income reclassification where the investment companies did not furnish tax information to LPL in time for February 15 mailing.
Fourth wave of 1099s. This includes AMBIR information (All Mortgage Backed Income Reporting) and any accounts that hold investment companies that did not report tax information to LPL in time for the previous mailings.
IRS filing deadline or extension request deadline.
Your 1099 can also be accessed through your AccountView login, after it has been mailed out.
Note that alternative investments held at LPL Financial will likely continue to mail out a separate 1099. This includes positions held with Northstar Healthcare, Griffin Capital, FS Energy, WP Carey, and KBS Real Estate. Please be on the lookout if you hold one or more of these positions.
What is income reclassification?
Income reclassification refers to a change of classification for previously distributed income. For example, a mutual fund may pay out several qualified dividends through the taxable year. However, in a year-end audit, the fund may see that a certain portion of the dividends actually need to be reclassified as a capital gain for taxable accuracy. This information is sent to LPL Financial and LPL Financial consolidates the information into the 1099s being sent out.
* Income reclassification is an industry-wide occurrence. All financial firms may receive reclassified data and have to adjust accordingly.