An interesting Schwab observation, and a WAG 8-ball IMO about when things get started here.... Somewhere between February 12th - 19th.
AZ mentioned the 10 days SEC required notification period upon completion of the 3 year 2nd Ownership Change, which 'should' be Febuary 12th 2021 at the latest. Which brings 2 simultaneous actions that can't be taken without the other at the same time. 2020 WMI/WMIH/COOP consolidated IRS tax filings for the entire legacy and newco business as a whole for the first time since 2007,....as well as the fiscal year 2020 release of legacy BK held-back interest income funds (2008-2020) through DTC markers for those who released. (Remember! I posted the link weeks ago, stating that REITs can lawfully delay year end reporting beyond 12/31 for 30-60 days without much penalty).
So, Today while gathering year end documents from Schwab for 2020 taxes, I noticed that my tax documents for ROTH IRAs were already done weeks ago and ready to print, as in every year prior.
However, my Brokerage account tax statement for 2020, won't be available until Feb 19. In years past it was available on 12/31, 1/16, 1/10....you get the picture. sure, it could be COVID related....
Now the 8-ball...wondering if the delayed tax documents for brokerage accounts are delayed just enough due to an upcoming corporate action from COOP and the DTC?
Why? What makes this interesting to me, is that I have UQ markers in ROTH and Brokerage Schwab accounts. And in a ROTH, IRS taxation isn't an IRS 1099 liability until I retire, so Schwab can produce the tax document instantly as they did, regardless of any future Corporate event or income impact for the account. However, my Brokerage account would have IRS tax implications for year 2020 if a last minute Corporate action for fiscal 2020 was about to occur (remember late tax filings by REITs are lawful), and I find it interesting that tax reporting in a tax liable account is coincidently delayed to just after a major COOP event to come. And as mentioned, my UQs in the ROTH, had tax statements issued weeks ago....2020 is long gone, there is no reason to postpone my Brokerage tax docs, when they already produced weeks ago my Roth tax documents - - and they BOTH hold the same flavors of COOP and UQs.
hmmmmm, I didn't have these Brokerage account tax statement delays or notifications in any prior year since 2008? So if nothing is changing and no money is coming, Why the delay now? Why now? Unless as AZ has explained so well, that the time is open us.
From Schwab: "In mid-February 2021, 1099s will be sent out for accounts that contain at least one investment for which the issuer can't provide information on time for the earlier mailing. Examples include ETFs and mutual funds, fixed income, REITs, UITs, WHFITs, and U.S. and foreign stocks that have been reclassified in the past. We expect these 1099s to be available on Schwab.com on Friday, February 19"
