Analyzing a Consolidated Investment Statement

Many brokerages and financial institutions provide a consolidated investment statement in lieu of individual tax reporting documents (e.g., 1099-DIV, 1099-INT, 1099-OID, 1099-B, 1099-MISC). The format of the statement can vary significantly dependent upon the source but will include relevant tax documentation as provided to the IRS for dividends, interest, original issue discount, transactions/sales, and royalties. Statements can also provide supplemental information, not provided to the IRS, that is essential for completing a tax return, e.g., dates, amounts, and source of domestic and foreign income; income associated with government obligations, state-sourcing of municipal bond interest, accrued interest, investment interest, and basis and basis adjustments for uncovered sales. Dependent upon format, the consolidated statement may, or may not be sufficient, and the preparer may need to request additional statements or information from the client. This presentation will review and discuss typical statements and contents, and how this information may be analyzed by a tax preparer.