Comerica 1099 Tax Deadlines: What You Need to Know

Key Takeaways:

• The initial deadline for consolidated 1099s to be received by the IRS is February 15, 2024.
• To ensure filing accuracy, brokerages often file extensions with the IRS, pushing back the deadline date by one month.
• Comerica files an extension every year to ensure that all consolidated 1099s can be reviewed for accuracy and filed timely. Depending on the complexity of your consolidated 1099, your form will be mailed to you on or before March 15, 2024.

With tax season in full swing, it’s time to gather your tax documents and prepare your return. The Internal Revenue Service (IRS) publishes strict guidelines on receiving and filing tax documents. These guidelines ensure everything gets turned in on time. They also help individuals with the accurate reporting on their tax return and avoid any associated penalty or interest. At Comerica, we support your tax filings by providing consolidated brokerage 1099 forms. Here is some helpful information on the tax documentation, upcoming IRS deadlines, and when you can expect to receive your consolidated brokerage 1099s.

What is a Consolidated Brokerage 1099?

A consolidated 1099 is the combined reporting of forms 1099-B, 1099-DIV, 1099-INT, 1099-OID and 1099-MISC from the reporting institution. If you have a brokerage account with Comerica, we’re the reporting institution, which means we’re responsible for providing this documentation. The consolidated 1099 form reports all associated information on one form, streamlining your review, recordkeeping and tax preparation.

What You Need to Know:
Your 1099 form contains a consolidated view of your brokerage information.

When Will My Consolidated Brokerage 1099s Be Available?

Although the IRS sets the deadline for filing and postmarking these forms, the availability depends on the specific requirements of filing for each recipient. This year’s postmark deadline for consolidated brokerage 1099s is February 15, 2024. But brokerage firms, like Comerica, have the option to file an extension to March 15, 2024. Most brokerages take advantage of this extended deadline to ensure that the reporting is accurate, as new information often comes in from other companies between February and March.

What You Need to Know:
You can expect your 1099 from Comerica to be mailed by March 15, 2024 and the IRS to receive the form electronically on the same day or shortly after.

Is This a New Deadline?

With so many tax forms, it’s easy to get confused by the deadlines. Many forms, including the 1099-NEC, 1099-R, and W-2 share a January 31 deadline. However, the Consolidated 1099 form has a later mail-by date. Due to the inclusion of the 1099-B, and the complexities of reporting brokerage information, the IRS has opted to put a deadline of February 15th on the Consolidated 1099 form. This deadline has been in place since 2008.

What you need to know:
The 1099 deadline has not changed. It’s still February 15th.

What Can Delay the Availability of Consolidated Brokerage 1099s?

The reporting of consolidated 1099s has gotten more complicated over the years due to a number of factors. This includes the increased popularity of certain assets (i.e., mutual funds and real estate), the overall number of companies and investments available, as well as the overall interconnected nature of companies and securities worldwide. All this investment information needs to be provided to the brokerage firms. And any changes to the information needs to be properly documented for each recipient. For example, if a company updates the classification of a dividend paid, these changes have to be reflected. Similarly, if a fund purchases a security in January, resulting in a wash sale, these changes must be sent to the brokerage firms for proper reclassification or coding. Since updates like these are common, brokerage firms take additional time to minimize corrections for 1099 statements.

What you need to know:
Comerica automatically files an extension every year to make sure the 1099 information is accurate and updated. The extension takes us through March 15th.

How Does Comerica Handle Consolidated 1099s?

For accounts that do not require additional review, Comerica will provide the statements as soon as all information is available. For accounts holding assets with added complexity or likelihood of corrected information, Comerica will carefully assess the account and issue the consolidated statement as soon as all information is available, and the likelihood of correction is as low as possible. For additional questions about consolidated 1099s, or other tax questions, please reach out to your Comerica Trust representative.

What you need to know:
We understand extended timing can add challenges to the preparation of your tax returns. Our goal is to provide tax documentation in a timely manner while adding value by ensuring accurate reporting in the first filing.