[Vanguard Brokerage Services] 1099Bs Issued at the End of Feb

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CUBuffs
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[Vanguard Brokerage Services] 1099Bs Issued at the End of Feb

Post by CUBuffs »

Hi Bogleheads,
I saw a question about someone's concern about Vanguard not issuing 1099Bs until the end of February for Brokerage Services accounts because they needed to complete their taxes to apply for college financial aid. I didn't want to hijack that thread, so I'd thought I'd ask another question. Does anyone know whether 1099B for Brokerage Service accounts will always be issued at the end of February or was this a one-time situation due to the conversion this year?

I read the material Vanguard issued about converting to Brokerage Service accounts, but I'm not exactly sure whether there was any benefit. I only converted by taxable accounts, i.e., I didn't convert my Roth IRAs. Are there some of you that didn't convert? If so are there any adverse issues? Also, if you didn't convert, did you receive complete 1099Bs by the end of January?

One last question. As discussed above, I didn't convert my Roth IRA accounts to Brokerage Service accounts. Does anyone see any downside to converting taxable accounts, but not IRAs?

Thanks for any thoughts anyone might have.

Mike
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GreatOdinsRaven
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Re: [Vanguard Brokerage Services] 1099Bs Issued at the End of Feb

Post by GreatOdinsRaven »

I believe that my 2014 1099-B also came after the end of Feb 2015. FWIW.
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Re: [Vanguard Brokerage Services] 1099Bs Issued at the End of Feb

Post by stlutz »

Mid-to-late Feb. is pretty typical for brokerage accounts. I think Schwab is saying 2/26. I believe Fidelity is saying 2/15.

The problem with earlier is that brokerages then end up issuing revisions because they get corrections from the dividend payers.
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Re: [Vanguard Brokerage Services] 1099Bs Issued at the End of Feb

Post by JDDS »

One of the changes in the last few years was that brokerage statements could be issued later. I expect February to be the norm going forward, as said it can cut down on corrections.
I would think it's a bit easier to convert IRA accounts that do not receive yearly tax documents.
You do not need to worry about cost basis transferring over or the timing of yearly tax documents. That said, I have not converted any of my accounts.
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Re: [Vanguard Brokerage Services] 1099Bs Issued at the End of Feb

Post by JoMoney »

<SIGH> I've got all converted/'upgraded' Brokerage accounts, still no 1099-DIV ...
Before the 'upgrade' last year I only had mutual funds in my account, and I'm pretty sure I got my statements before February. Not this year :(
Although I like the new clean look, and the consolidated statements, I no longer use any of the brokerage services, and I don't want to. I have one Vanguard mutual fund in each of 3 accounts (taxable, traditional IRA, and Roth). I wish I could cleanly convert back to a mutual fund only account :?
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Re: [Vanguard Brokerage Services] 1099Bs Issued at the End of Feb

Post by HueyLD »

JoMoney,

If your holdings were that simple, why did you bother to convert to VBS? Was the conversion mandatory?
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Re: [Vanguard Brokerage Services] 1099Bs Issued at the End of Feb

Post by Toons »

Feb, is not out of the normal range at all.
I have an account at another institution that informed me of 3 mailing dates.
Mid Feb,Late Feb,Mid March. :happy
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MalaPaul
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Re: [Vanguard Brokerage Services] 1099Bs Issued at the End of Feb

Post by MalaPaul »

My understanding that the IRS deadline for issuing 1099s is February 16, 2016 (February 15th is a holiday)

This is different (earlier) then the end of the month.

It is always possible that a corrected 1099 is issued after the cutoff but only if the circumstances warrant.
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Re: [Vanguard Brokerage Services] 1099Bs Issued at the End of Feb

Post by quantAndHold »

Welcome to the world of brokerage accounts. This isn't specifically a Vanguard issue. I don't think I've ever had a full, complete, and correct set of 1099's before mid-March. I don't even try to do my taxes before April anymore, because the second I think I have everything and push the button to file, I'll get a corrected 1099 from someone.
Yes, I’m really that pedantic.
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Re: [Vanguard Brokerage Services] 1099Bs Issued at the End of Feb

Post by cherijoh »

stlutz wrote:Mid-to-late Feb. is pretty typical for brokerage accounts. I think Schwab is saying 2/26. I believe Fidelity is saying 2/15.

The problem with earlier is that brokerages then end up issuing revisions because they get corrections from the dividend payers.
Yeah, that happened to me a few years ago. Fortunately I hadn't pulled the trigger and e-filed my tax return yet. (I owed the IRS money, so I wasn't in any hurry to file -- this was before the identity theft/bogus tax return issue came to light).
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Re: [Vanguard Brokerage Services] 1099Bs Issued at the End of Feb

Post by cherijoh »

MalaPaul wrote:My understanding that the IRS deadline for issuing 1099s is February 16, 2016 (February 15th is a holiday)

This is different (earlier) then the end of the month.

It is always possible that a corrected 1099 is issued after the cutoff but only if the circumstances warrant.
I believe the individual funds have until mid-February to issue 1099's. But then the brokerages have to consolidate the individual funds data before issuing your statement. My 2014 VG brokerage statement showed up as a pdf on 2/24/15 and AFAIR it was not a corrected statement.
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Re: [Vanguard Brokerage Services] 1099Bs Issued at the End of Feb

Post by jhfenton »

MalaPaul wrote:My understanding that the IRS deadline for issuing 1099s is February 16, 2016 (February 15th is a holiday)

This is different (earlier) then the end of the month.

It is always possible that a corrected 1099 is issued after the cutoff but only if the circumstances warrant.
Yes, but it's not unusual for the IRS to grant brokers extensions, which is why they can get away with publicizing their plans to be late. The delay annoys me, but it seems to be reality.

I usually don't care, because we usually owe a small amount and file at the last minute. But with my wife unemployed the second half of the year, our break-even calculations were thrown off. Even with her unemployment being under-withheld (10% federal, 0% state), we're looking at a federal refund this year--and break-even state. At this point, I have everything to file except our mortgage 1098 and brokerage 1099s.
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Re: [Vanguard Brokerage Services] 1099Bs Issued at the End of Feb

Post by oldzey »

Here are the 2015 dates that my forms (pdfs) were available in the Vanguard Tax Center, FWIW:

1099-DIV: 2015-01-16
Consolidated Form 1099: 2015-02-24
5498: 2015-05-12

And so far in 2016:

1099-DIV: 2016-01-16
1099-B: 2016-01-17
Last edited by oldzey on Sun Feb 07, 2016 11:31 am, edited 1 time in total.
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Issuing 1099-B's

Post by EyeDee »

MalaPaul wrote:My understanding that the IRS deadline for issuing 1099s is February 16, 2016 (February 15th is a holiday)
.
This matches the information in "Sec. 6 Filing Requirements, Retention Requiremetns, and Due Dates" on page 13 of IRS Publication 1220, "Specifications for Electronic Filing of Forms 1097, 1098, 1099, 3921, 3922, 5498, and W-2G"

https://www.irs.gov/pub/irs-pdf/p1220.pdf

However "Sec. 7 Extensions" on page 14, use of the word "automatic" in the first paragraph implies it is very easy to extend that to mid March:

"A 30-day extension of time to file information returns may be submitted by creating and transmitting an electronic file or fill-in form on the FIRE Production System, or submitting a paper Form 8809. An approval letter will not be issued for the initial automatic 30-day extension request.

An additional 30-day extension of time to file information returns may be requested if the initial automatic 30-day extension was granted and the additional extension is filed before the expiration of the initial automatic 30-day extension. Generally, requests for additional time are granted only where it is shown that extenuating circumstances prevented filing by the date granted by the first request."
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Re: [Vanguard Brokerage Services] 1099Bs Issued at the End of Feb

Post by quantAndHold »

By the way, I haven't gotten them in the mail yet, but my 1099's from Vanguard are already available online.
Yes, I’m really that pedantic.
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Re: [Vanguard Brokerage Services] 1099Bs Issued at the End of Feb

Post by midareff »

The VBS document was labeled February 24th last year, which was the 1099B for 2014.
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Re: [Vanguard Brokerage Services] 1099Bs Issued at the End of Feb

Post by NonnyGoGo »

Mid February according to Vanguard. https://investor.vanguard.com/taxes/tax-forms/
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Re: [Vanguard Brokerage Services] 1099Bs Issued at the End of Feb

Post by Doc »

From Schwab: (Composite)
The Emergency Economic Stabilization Act of 2008 extended the regulatory mail date deadline for the 1099 Composite from January 31 to February 15. Schwab sends out 1099 Composites in two mailings. The first mailing is sent out in late January to clients that hold securities like equities and options that do not have a high risk of reclassification of income that would require issuing a corrected 1099. The second mailing is sent out in mid-February to clients with mutual funds and ETFs that have shown a tendency to reclassify certain income. By waiting until mid-February, we reduce the number of corrected 1099s due to reclassifications which might require taxpayers to amend their tax returns.
From Vanguard: (Brokerage only)

Various forms listed separately but the used one "consolidated" form in 2014
Mid-February
Forms are usually available online a few days before the mailing date IIRC.
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Re: [Vanguard Brokerage Services] 1099Bs Issued at the End of Feb

Post by JoMoney »

HueyLD wrote:JoMoney,

If your holdings were that simple, why did you bother to convert to VBS? Was the conversion mandatory?
It wasn't always this simple, and I didn't think it could hurt. I wanted to get rid of having both a brokerage and mutual fund account and clean up all the stale mutual funds I don't buy anymore from showing up.
It's really not that big of deal, but there have been drawbacks that would have made me not jump on it when it was offered... it did seem to imply like it was going to be mandatory at some point anyway

-can't direct deposit regular paycheck into my mutual fund (have to go through settlement account)
-buy/sell orders take more time to settle
-tax forms come later (I tend to file pretty early, want to get it over with)
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Re: [Vanguard Brokerage Services] 1099Bs Issued at the End of Feb

Post by mickeyd »

Are there some of you that didn't convert? If so are there any adverse issues?
I have received several "offers" to convert. Since I am OK with the current set up, I continue to decline.
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Re: [Vanguard Brokerage Services] 1099Bs Issued at the End of Feb

Post by GerryL »

I wrote to Vanguard last month about the timing of the brokerage statements, noting that taxpayers are being advised to file as early as possible in order to avoid ID theft issues with someone filing and claiming a refund with their SS#. I suggested they consider at least posting a preliminary version of the forms for download before the final (well, probably final) version is mailed out. They responded that there are no plans at this time to move up the mailing of the brokerage tax statements but that my suggestion will be "passed along."
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Re: [Vanguard Brokerage Services] 1099Bs Issued at the End of Feb

Post by jebmke »

GerryL wrote:I wrote to Vanguard last month about the timing of the brokerage statements, noting that taxpayers are being advised to file as early as possible in order to avoid ID theft issues with someone filing and claiming a refund with their SS#. I suggested they consider at least posting a preliminary version of the forms for download before the final (well, probably final) version is mailed out. They responded that there are no plans at this time to move up the mailing of the brokerage tax statements but that my suggestion will be "passed along."
Isn't your Dec 31 statement essentially a "preliminary version"?

I typically have enough information by around December 25 to do a pretty accurate pro forma tax return -- certainly enough to file and amend (which is what you are suggesting as a plan).
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Re: [Vanguard Brokerage Services] 1099Bs Issued at the End of Feb

Post by mxyztplk »

JoMoney wrote:
HueyLD wrote:JoMoney,

If your holdings were that simple, why did you bother to convert to VBS? Was the conversion mandatory?
It wasn't always this simple, and I didn't think it could hurt. I wanted to get rid of having both a brokerage and mutual fund account and clean up all the stale mutual funds I don't buy anymore from showing up.
It's really not that big of deal, but there have been drawbacks that would have made me not jump on it when it was offered... it did seem to imply like it was going to be mandatory at some point anyway

-can't direct deposit regular paycheck into my mutual fund (have to go through settlement account)
-buy/sell orders take more time to settle
-tax forms come later (I tend to file pretty early, want to get it over with)
You can remedy that problem by opening up a taxable mutual fund only account [i.e., under the Vanguard Group, not Vanguard Brokerage Services].

Just call up your friendly Vanguard rep and ask to open a new, mutual fund only account (i.e., like the one that you had before), using the same information on your VBS taxable account. Then transfer all of your Vanguard mutual funds to that new account.
(The new account would just appear as an additional account under your login.)

If you have holdings other than Vanguard mutual funds, they would remain in your existing account. Otherwise, you may wish to keep a few dollars in your VBS taxable account so that Vanguard does not close it.

(The Vanguard rep may ask why you need a regular mutual fund account, at which point you should itemize the deficiencies of the VBS account that are preventing you from doing what you need to do and what you could do before you experienced your "improved" account.)

My neighbor had a VBS account that lacked the desired features, so I helped her to add a "classic" mutual fund account that had the desired features.

BTW, automatic exchange is another feature that the VBS accounts lack but that the Vanguard Group mutual fund accounts have.
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Re: [Vanguard Brokerage Services] 1099Bs Issued at the End of Feb

Post by mxyztplk »

According to my copy of TurboTax Deluxe, the VBS 1099s will be available for import on February 19, 2016.
No Documents Currently Available for Import

According to Vanguard Group - Brokerage Account, documents will be available for import on the following dates:

1099-B Available February 19, 2016
1099-DIV Available February 19, 2016
1099-INT Available February 19, 2016
1099-MISC Available February 19, 2016
1099-OID Available February 19, 2016
1099-R Available February 19, 2016
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Re: [Vanguard Brokerage Services] 1099Bs Issued at the End of Feb

Post by GerryL »

jebmke wrote:
GerryL wrote:I wrote to Vanguard last month about the timing of the brokerage statements, noting that taxpayers are being advised to file as early as possible in order to avoid ID theft issues with someone filing and claiming a refund with their SS#. I suggested they consider at least posting a preliminary version of the forms for download before the final (well, probably final) version is mailed out. They responded that there are no plans at this time to move up the mailing of the brokerage tax statements but that my suggestion will be "passed along."
Isn't your Dec 31 statement essentially a "preliminary version"?

I typically have enough information by around December 25 to do a pretty accurate pro forma tax return -- certainly enough to file and amend (which is what you are suggesting as a plan).
I can get so far. Then the tax s/w says "Is box x checked?" or "What is in box b?" I haven't a clue.
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Re: [Vanguard Brokerage Services] 1099Bs Issued at the End of Feb

Post by AviN »

I received my 1099-DIV, 1099-B, and 1099-R from Vanguard by the end of January.

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Re: [Vanguard Brokerage Services] 1099Bs Issued at the End of Feb

Post by saves nine »

I converted my Vanguard funds to Vanguard brokerage in the last week of December, 2015. All 1099's for those funds were available online by the end of January, 2016. (Probably earlier.) Only 1099s for securities (stocks, bonds, etfs, tips) held in the brokerage account are still outstanding; I assume that I'll be receiving these in the second half of February as in the past. In the last five years, finalized 1099-oids (for TIPS) were further delayed a couple times; these are the only little problems I recall.
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Re: [Vanguard Brokerage Services] 1099Bs Issued at the End of Feb

Post by Bill M »

I can understand 1099-DIV needing profit information from the company, in order to determine whether the dividends were qualified or non-qualified.

But 1099-B??? Can anyone explain what is needed from the company in order for the broker to match up sales and purchases and calculate gain/loss?
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Re: [Vanguard Brokerage Services] 1099Bs Issued at the End of Feb

Post by Doc »

saves nine wrote:All 1099's for those funds were available online by the end of January, 2016.
If those funds had dividends that posted after the transfer you will likely receive a second 1099-Div for those funds from VBS.
Bill M wrote:I can understand 1099-DIV needing profit information from the company, in order to determine whether the dividends were qualified or non-qualified.

But 1099-B??? Can anyone explain what is needed from the company in order for the broker to match up sales and purchases and calculate gain/loss?
If you have more than one type of 1099 it is not uncommon for the broker to send one consolidated statement instead of separate mailings.
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2015 Vanguard Brokerage 1099 Available

Post by HG1137 »

The consolidated Vanguard brokerage 1099 appeared in my account tonight. It's dated February 14.
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Re: [Vanguard Brokerage Services] 1099Bs Issued at the End of Feb

Post by LadyGeek »

HG1137, Welcome! I moved your post into here, as I thought this is where you intended it to be - with the on-going discussion.

Did you have any questions about the form or anything else?
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Re: [Vanguard Brokerage Services] 1099Bs Issued at the End of Feb

Post by HG1137 »

LadyGeek wrote:HG1137, Welcome! I moved your post into here, as I thought this is where you intended it to be - with the on-going discussion.

Did you have any questions about the form or anything else?
Thanks, LadyGeek! Fortunately, my brokerage 1099-B is fairly simple this year, so I should be all set. (Last year, I had some fun tracking the cost basis for the sales of some individual stock holdings.)
mxyztplk wrote:According to my copy of TurboTax Deluxe, the VBS 1099s will be available for import on February 19, 2016.
No Documents Currently Available for Import

According to Vanguard Group - Brokerage Account, documents will be available for import on the following dates:

1099-B Available February 19, 2016
1099-DIV Available February 19, 2016
1099-INT Available February 19, 2016
1099-MISC Available February 19, 2016
1099-OID Available February 19, 2016
1099-R Available February 19, 2016
Mxyztplk, I tried to start the importation process in TurboTax for the brokerage 1099-B tonight just for fun, and these same dates showed up for me. I expected that that would happen, but I figured it was worth a shot. 8-)
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Re: [Vanguard Brokerage Services] 1099Bs Issued at the End of Feb

Post by Geologist »

To show that financial services firms can apparently do what they like, I received a 1099-DIV (that is, not a brokerage 1099, but a mutual fund 1099) from a non-Vanguard mutual fund today. The administrative company is State Street. I think this mutual fund's 1099 comes late every year, although I'm not sure it arrives this late.
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