Preparing for tax season 

Tax season can be a stressful time for advisors and end-clients alike. By taking time to prepare for this busy time of year, you can have a smooth and effortless tax reporting experience. Browse our list of articles to create a positive client experience during tax season.

How to prevent tax reporting to the wrong state
For tax purposes, the mailing address on the account on the last business day of the year will be reported as the account owner’s residence to the Internal Revenue Service (IRS). This includes seasonal client addresses.

If the account mailing address was incorrect as of December 31, Schwab cannot produce a corrected tax form or letter to the IRS reflecting a different mailing address unless the incorrect information was due to a Schwab error. Your client should work with the state tax authority or tax advisor for resolution.

How to update and research missing cost basis
The presence of missing cost basis for shares sold presents a challenge for clients when they perform tax reporting. You can avoid this issue by making some preparations before Schwab generates the Form 1099 Composite.