Farris CPA Louisville Kentucky
Farris CPA

Farris & Associates CPA PLLC Blog

Now that the end of January is upon us, taxpayers should have received most of their tax documents in the mail. Employers have until January 31st to send out your W-2 and 1099 statements. Note, if a taxpayer sold stocks or mutual funds in 2011, brokerage firms have until February 15th to send out their 1099-B statements reporting these sales. If a taxpayer holds an interest in a partnership or S corporation, they may not receive a K-1 by the time of filing their personal return. In this case, the taxpayer might want to consider filing for an extension to wait on their K-1 to arrive. If you did not receive a 1099 or W-2 you were expecting, contact your employer immediately. If you need further assistance the IRS has procedures to follow to get these forms. Our office can help you follow these steps.

One of the biggest changes for the 2012 tax year is the new reporting requirements for capital gain and losses. Schedule D has been revamped and the new Form 8949 will be used to report these gains and losses. Brokers are now required to report the adjusted basis of securities and funds sold directly on the 1099-B so taxpayers should be aware of this as they review their 1099-B forms. The change to Schedule D was made to accommodate this new reporting requirement. Taxpayers (and their brokers) might see some questions from their CPA regarding their stock sales for the year to comply with the new reporting requirement.

As always, while you are gathering your 2011 tax documents, please feel free to call our office with any questions. A best practice is to save all your tax-related documents in a folder or binder and bring that with you when you come in for an appointment. We will do a thorough check to make sure we have everything needed to prepare your return. As we are working through your tax return, we will be sure to call you if we need more information or believe an item is missing from your file.

Happy Tax Season!

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