Dividend 1099’s

Many mutual funds and brokerage firms have requested and received an extension from the IRS until February 15, 2007 to distribute 1099s for dividends.

Based on the tax laws as to what is considered qualified dividends, subject to the 15% tax bracket these third party investors must receive the dividend information from the individual companies whose stock they hold. The companies do not give their dividend information until January 31, 2007.

The mutual funds and brokerage houses do not want to send amended 1099’s in February after many people have filed their returns. As this would require those who have filed to amend their income tax returns. The IRS has approved their extension to avoid the amended returns.

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