Importance of Electronic 1099s

electronic-1099The IRS has now made the electronic filing of 1040s mandatory (except for certain cases). Therefore, electronic tax documentation has become extremely important to tax preparers.

During one year a taxpayer may have bought and sold hundreds of stocks which each produce a transaction on Form 1099-B. This can create a document that easily exceeds 50 pages.

The IRS requires that either:

  • every sale transaction be reported separately on your tax return,
  • or that documentation be attached to the return if summary data is used instead.

Due to this requirement and the requirement to file electronically, we are asking our clients to send your 1099s from your investments to us in PDF form. This will allow us to electronically attach the document to your tax return.


 

If you have any questions regarding electornic 1099s, please don’t hesitate to call us at 314-993-4285 or email us at office@hkaglobal.com.

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