Tax Form Corrections

Receiving a corrected document

You will receive an email notification from Apex Clearing if you are issued a corrected tax document. The most common reason for receiving a corrected tax document is due to the reclassification of income distributions by the issuing company. Revisions are typically sent before the tax filing deadline but can also be sent after the deadline. 

If you receive a revised tax document after filing your taxes, we recommend consulting a qualified tax professional for any questions about amending your return.

Common reasons for corrections:

1. Income reclassification: A distribution received into your account may have initially been classified as a capital gains distribution, qualified or non-qualified dividend, return of capital, etc. However, the company that issued the distribution has since reclassified how that income is categorized.
2. Cost basis correction following a brokerage account transfer: If the cost basis for an incoming brokerage transfer was provided by your previous brokerage after your original tax document was issued, you may receive a revised tax document with the updated cost basis.
   
3. Update to personal information: If you notified Frec that your personal information (SSN/TIN, Address, Name, etc.) on your 1099 form is incorrect, a corrected 1099 can be issued with the updated information.

How can I tell if there was a correction?

To identify if your Consolidated 1099 has been corrected, refer to the document header on page 1 above the Tax Reporting Statement, as shown below. You can also identify the specific changes by looking for a "C" next to any corrected line items. If your total gain or loss has changed and you’ve already filed, you may need to amend your taxes using IRS Form 1040-X. For more information on amending your taxes, visit the IRS website here.