If you had an open account in 2023, you may receive tax documents from Commonwealth Financial Network® and National Financial Services (NFS). in the coming months. Your NFS tax statement will include only account activity from the time you started conducting business with them.
You can also find helpful tax-related information in Investor360°® under the Statements & Documents tab to the right of Tax Reporting or by selecting Help (“?”) in the upper right-hand corner and then going to Tax Reporting.
In order to accurately portray your tax liability, it is important to gather all tax reporting forms for accounts opened in 2023 before filing. Please keep this in mind when scheduling a time to file your tax return. For mailing times on non-NFS tax documents, please contact your previous custodian.
Below are the most common tax documents, followed by a description that will help you better understand the purpose of the mailings and when you can expect to receive them.
Non-retirement accounts
Forms 1099-B, 1099-DIV, and 1099-INT: These tax documents include information on the proceeds of any sales and cost basis (when known) of securities within your account, as well as dividends or interest paid within an account for most securities.
The 1099 form also features supplemental information (not reported to the IRS) that you may find helpful in preparing your income tax returns.
Most 1099 tax forms for tax year 2023 will be available online between January 20 and February 10, 2024, and will be mailed shortly thereafter. Like in past years, however, NFS has filed and received a 30-day extension from the IRS that will permit the generation of some 1099 tax forms after February 15, 2024.
Not all issuers send final information to NFS in time to meet the February standard IRS 1099 mailing deadline. NFS uses this extension to ensure that the information on the tax documents you receive is accurate, which, in turn, reduces the need to send a corrected form after February 15.
In the event that final tax reporting information is expected for your account after February, a “preliminary” tax statement will be available online in Investor360° on February 10, 2024. The preliminary form will provide a single view of current tax information to assist in determining early tax liability.
Retirement accounts
Form 1099-R: This form is issued when you have made a distribution from your retirement account or in connection with a Roth IRA conversion or recharacterization.
Form 5498: A Form 5498 provides the fair market value of the account as of the prior year-end, as well as beneficiary information. The 5498 will capture contributions made to a traditional, SEP, or SIMPLE IRA, as well as Roth IRA conversions or recharacterizations completed in 2023.
If you make prior-year contributions between January 1, 2024, and April 15, 2024, these transactions will be captured in an updated 5498 tax document that will be mailed to you by May 17, 2024.