According to Reuters, brokerage houses have upset some clients by needing more time to provide 1099s based on a new IRS rule that requires brokerages to report how much their clients spent on equities. Though some houses have informed clients of the delay and recommended extensions, some folks aren't too happy about that, including random acquaintances who may run in to innocent accountants at the gym:
Accountants say the delays have put those clients who are already testy this time of year into a full-on panic.
Novato, California-based accountant Teresa Gallina was shocked when a woman she knew casually accosted her at the gym because she had not yet received her 1099 forms from her brokerage. "She went off on me because she was so frustrated," said Gallina.
The article states that one financial adviser's client said they would rather sell the account in question and be done with it than wait for a 1099 and file an extension, which they believe could trigger an IRS audit. As if cashing out a fund is any easier of a tax trick.
Well that's awkward.
As we’ve mentioned, the scourge of tax policy pragmatism,