Corrected 1099s suggestions

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Apr 3, 2006 4:03 pm

Does anyone have a lot of accounts that are discretionary equity portfolios and or 3rd party managers?  If you do, my question is how do you deal with the seemingly unending slew of corrected 1099s?  I now have over 35 million in this area of my book and the 1099s are getting to be problematic.  It is a royal pain in the ass to be blunt.


Does anyone have a good client oriented way to deal with this that keeps everyone happy?  Just when you think everything is in and correct, wham, you get hit again with another correction for some small amount.

Apr 4, 2006 7:19 am

I put some of my personal accounts in all of the platforms, and jump in
the pool of irritation with the clients.  I tell them not to do
the taxes until late MArch if possible, and we deliver all corrections
to the CPA's ourself.  We communitate to the CPA and the clients
it is a result of Sarbanes Oxley, that the corrections occur.  I
have found this to work out, and we forge some nice relationships witht
he CPA's, despite what asses they really are.  Its a terrible time
of the year but thats why summer follows it.

Apr 4, 2006 9:00 am

Actually more a result of tax reform. (Qualified/non-qual. dividends.) The CPAs understand this. Simply an education issue for the clients. Send a "Happy/Prosperous New Yr." note in Jan. and explain in the note that 1099s will be coming in Jan BUT expect several corrections and DO NOT get in a hurry to get taxes done. Then you can say, "Didn't you get my message early Jan?"

Apr 4, 2006 9:17 am
Revealer:

Actually more a result of tax reform. (Qualified/non-qual. dividends.) The CPAs understand this. Simply an education issue for the clients. Send a "Happy/Prosperous New Yr." note in Jan. and explain in the note that 1099s will be coming in Jan BUT expect several corrections and DO NOT get in a hurry to get taxes done. Then you can say, "Didn't you get my message early Jan?"



Sadly my experience has been that not all CPA's understand this.   Either that or their using it as a way to try to pry clients away and send them to folks they favor.

Apr 4, 2006 11:41 am

Good stuff from all of you- thanks.  Rightway especially.  That is what I will do next year.  Best regards,  Malcolm 

Apr 4, 2006 8:12 pm

Ditto what Malcolm said.


I take CFO Magazine and every issue has one or more articles about what a pain it is to deal with Sarbanes-Oxley (SOX). Also, a majority of their magazine ads are from companies offering software and/or services to help cope with SOX. That legislation has really spurred a growth industry in compliance.