Tax filing FAQ

Important notes about your tax statements:

  • Tax statement mailing dates vary slightly depending on the types of accounts and investments you own1, 2.
  • For jointly-owned accounts (and those owned by a trust or a corporation), tax statements are sent only to, or viewable online only by, the designated taxpayer on the account.
  • We recommend waiting to file your tax returns until each taxpayer in your household (or group) receives tax statements for all of their accounts with reportable activity in 2016.
  • Copies of most tax statements will be available on the secure site on ameriprise.com as they are mailed. Register or log in. Some RiverSource® annuity tax statements are only available on riversource.com. Log in.
  • The IRS filing deadline for 2016 individual tax returns is delayed until April 18, 2017 due to legal holidays3.

General tax statement and mailing questions

Tax statements are mailed at various times from January through May based on Internal Revenue Service (IRS) requirements and the investments you own. The most common mailing dates are listed below. Review the complete 2016 tax statements mailing dates schedule.
  • Jan. 31, 2017 - Tax statements for annuities, nonqualified Ameriprise® certificates, life insurance policies, IRAs and other retirement accounts, 529 Plans, and Coverdell Educations Savings Accounts (CESA).
  • Feb. 15, 2017- Tax statements for Ameriprise brokerage accounts, Managed Accounts investments and Columbia mutual funds.

Your household may receive more than one year-end tax package from Ameriprise Financial if:

  • You own various types of investments that have different IRS mailing deadlines.
  • There is more than one taxpayer in your household.
    • Each account has one designated taxpayer and one associated taxpayer ID, including accounts that are owned jointly, by a trust, by a corporation, etc.
    • The IRS requires that we send tax statements teach taxpayer separately.
    • If you need to verify who the taxpayer is on an account contact your Ameriprise financial advisor or a client service representative at 800.862.7919.
  • Your various accounts with reportable activity in 2016 have different mailing addresses or different financial advisors assigned.
  • You own a Custodial IRA plan which has investments in mutual funds, certificates and/or brokerage accounts. 
  • Custodial IRA plans receive one aggregate tax statement for all the accounts in the plan.
  • You own a Columbia mutual fund that was moved into brokerage account in 2016. 

For more information, see questions:
When will my tax statements be mailed?
Will I receive more than one year-end tax statement package?
I own a Columbia mutual fund. Why does my tax reporting look different than in past years? 
Why don’t I see tax statements for all of my IRA accounts?

Copies of many of your tax statements are available on the secure site on ameriprise.com. However, some RiverSource® annuity tax statements are only available on riversource.com.

To view your tax statements online you must be:

  • At least 18 years old
  • The taxpayer on the account
  • Registered for the secure site on ameriprise.com

For more information see Online tax information FAQ

You can get a copy of your tax statement online. See the previous question for more information.

If you don’t find the statement you are looking for online, please allow 10 calendar days following the tax statement mailing deadline treceive your statements by mail prior tcontacting your advisor or the Service Center for a duplicate statement. See contact information below. 

Any owner or any person who is authorized to transact business for the account can request that tax statements be mailed to the address of record. For minors, the account custodian must make the request.

Note: Duplicate copies will be mailed to your address of record. Tax statements can’t be sent by fax or email.

Only the last four digits of a Taxpayer Identification Number (TIN), which may be a Social Security Number (SSN), Individual Taxpayer Identification (ITIN), Adoption Taxpayer Identification Number (ATIN), or Employer Identification Number (EIN), will be shown on tax statements. The preceding numbers will be replaced with X.

For example, SSN 123-45-6789 will be shown on the tax statement as the Recipient’s ID No. XXX-XX-6789. Truncating the TIN may assist in protecting you from identity theft. Although the number will be truncated on your tax statement, we will still report the full TIN to the IRS as required.

The Ameriprise annual financial statement reflects your account at a single point in time, on the last business day of the year. Alternately, your Ameriprise tax statements provide specific information that may be taken into consideration when preparing tax returns. The financial statement and the tax statement each have a different purpose, so you may notice different levels of detail in each statement. For instance:

  • Value of fixed interest investments when Dec. 31 falls on a weekend
    • Financial statement: Value of investments as of the last business day of the year
    • Tax statement: Value of investments includes interest through Dec. 31
  • Income reclassification – Tax designation of income may change after year-end; most commonly occurs with mutual funds, unit investment trusts (UITs) and real estate investment trusts (REITs)
    • Financial statement: Captures the information available at year-end
    • Tax statement: Updated statements are sent tclients when we get changes from investment issuers
  • Spillover dividends – Some mutual fund dividends are declared in the fourth quarter of the year and payable the following January
    • Financial statement: Captures the information available at year-end
    • Tax statement: Dividends are reportable and taxable for the year they are declared so updates are made after year-end
  • Sale transactions
    • Financial statement: Displayed by settlement date
    • Tax statements: Reported to the IRS by trade date
  • Cost basis
    • Financial statement: Provided as a service; it may not reflect all the adjustments needed for tax reporting purposes
    • Tax statements: For covered investments, report cost basis, holding period and gain/loss information to you and the IRS per mandatory cost basis reporting regulations. Cost basis for noncovered investments is provided if available but not reported to the IRS. See Cost basis reporting FAQ for more information on covered investments.
For more information about the financial statement, go to Ameriprise financial statements FAQ.

Nonqualified tax reporting

Nonqualified accounts are ones that are not part of an IRA, tax-deferred retirement plan or education savings plan (529 or Coverdell).

For these types of accounts we generally issue 1099 tax statements to U.S. clients and 1042-S to nonresident alien clients such as:

  • Form 1099-B (Proceeds From Broker and Barter Exchange Transactions)
  • Form 1099-DIV (Dividends and Distributions)
  • Form 1099-INT (Interest Income)
  • Form 1099-MISC (Miscellaneous Income)
  • Form 1099-OID (Original Issue Discount)
  • Certain Forms 1099-R, for distributions from nonqualified annuity contracts and insurance policies (Also issued for IRAs and qualified plans. See “Qualified tax reporting” section below.)
  • Form 1042-S (Foreign Person’s U.S. Source Income Subject to Withholding)

 

In December of 2016, Columbia mutual funds (account numbers ending in 002) were moved into brokerage accounts (account numbers ending in 133). You may receive one or more tax statements depending on the income and activity in your account(s):

  • Tax statement for the account ending in 002 for any activity prior to Dec. 5, 2016
  • Additional tax statement for the account ending in 133 for any activity on or after Dec. 5, 2016.

A 3.8% Net Investment Income Tax (under Internal Revenue Code section 1411, as part of the Affordable Care Act enacted in 2010) is imposed on certain unearned income of high-income individuals, estates and certain trusts.

  • This tax is a completely separate tax, independent from regular federal income tax or Alternative Minimum Tax.
  • For example, nonqualified annuity distributions (from both deferred and annuitized contracts) are potentially subject to the 3.8% tax, depending on your Modified Adjusted Gross Income and investment income.
  • This tax applies only to individual and joint filers who exceed certain income thresholds. For more information, see Calculating and reporting 3.8% Net Investment Income Tax and visit Questions and Answers on the Net Investment Income Tax on the IRS website.

Form 1099-R is issued for reportable distributions (i.e. distributions of taxable earnings, 1035 exchanges, etc.). A distribution from a nonqualified annuity or an insurance policy may be non-reportable if it is entirely return of premium, with no taxable earnings. In this case there would not be a Form 1099-R issued.

The IRS requires us to report a 1035 exchange (transferring nonqualified annuity or insurance accounts between companies) even though it is not taxable. Your Form 1099-R reports:

  • Line 2a, Taxable amount: $0.00
  • Line 5, Employee contributions/Designated Roth contributions or insurance premiums (includes "insurance premiums", which is the investment in the contract information provided to the receiving company)
  • Line 7, Distribution code(s): distribution code 6

Note: If you received any value at the time of the exchange, such as a loan cancellation or a check sent to you, the amount you received is taxable up to the earnings in the account. Any taxable distribution or deemed distribution, like this, is reported on a separate Form 1099-R.

Other types of 1035 exchanges include: life insurance to nonqualified annuity, life insurance to qualified long-term care insurance policy, nonqualified annuity to qualified long-term care insurance policy, and qualified long-term-care insurance policy to another qualified long-term-care insurance policy.

  • If any of your accounts earned less than $10 in income for the calendar year, you generally will not receive 1099-DIV, 1099-INT or 1099-OID forms because the IRS does not require tax reporting for these accounts.
  • There are exceptions to this rule. We will issue a tax statement if there was any amount of backup withholding, early withdrawal penalty, or foreign tax paid on accounts that earned less than $10 in income for the calendar year.
  • Even if you don’t receive a tax statement from, you generally must report income less than $10` on your tax return. The total amount of income earned in 2016 in your account(s) can be viewed in the Activity Detail section on your last financial statements for 2016 and on your Ameriprise annual financial statement (available only on ameriprise.com).

IRS Publication 550 (Investment Income and Expenses) defines a wash sale as follows:

A wash sale occurs when you sell or trade stock or other securities at a loss, and within 30 days before or after the sale:

  • Buy a substantially identical stock or securities
  • Acquire substantially identical stock or securities in a fully taxable trade
  • Acquire a contract or option to buy substantially identical stock or securities, or
  • Acquire substantially identical stock or securities for an individual retirement arrangement (IRA) or Roth IRA5

The wash sale period for any sale at a loss consists of 61 days: the day of the sale, the 30 days before the sale and the 30 days after the sale. There is no penalty when a wash sale occurs, but some or all of the loss is disallowed, and the amount disallowed is added to the basis of the new stock or securities and taken into account when those are sold.

Cost basis regulations for covered investments6 require broker-dealers to track wash sales resulting from sale and purchase transactions of identical securities (same CUSIP) within the same account only. In some situations a firm’s calculations of cost basis and gain/loss will not incorporate every wash sale which may have occurred within an account(s). As a result, you will need to track and adjust certain transactions affected by wash sales to disallow loss and adjust basis in order to comply with IRS rules.

You must apply the wash sale rules yourself for the following situations:

Sales and purchases occurring between brokerage (accounts ending in 133) and mutual fund accounts (accounts ending in 002):

  • Wash sales resulting from sale and purchase of identical securities (same CUSIP) in different accounts
  • Wash sales resulting from sale and purchase of substantially identical stock or securities, regardless of whether the sale and purchase occurred in the same account or different accounts

Sales and purchases occurring in mutual fund accounts only (accounts ending in 002):

  • Wash sales resulting from the sale of noncovered mutual fund shares and purchase of covered mutual fund shares within the same account

For more information, consult a qualified tax professional or IRS publication 550, which is available on the IRS website.

  • Entities that have not provided Ameriprise with a certified Taxpayer Identification Number (TIN) are treated as foreign entities for Foreign Account Tax Compliance Act (FATCA) purposes.
  • Nonqualified accounts owned by entities such as trusts, corporations, partnerships, estates, etc., (not individual clients) without a certified TIN on file during any part of the year, will be subject to withholding on interest and dividend income during that time, under Chapter 4 of the Internal Revenue Code (currently 30%).
  • If Ameriprise does not have a certified TIN on file for your account(s) at any time during the year, you may receive Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding7, by March 15, 2017, reporting interest and dividend income and associated Chapter 4 withholding.
  • You may also receive any applicable Forms 1099 if your TIN was certified at some point during the year.

If you received Form 1042-S and you are not a foreign client, contact your financial advisor or the Ameriprise Service Center, at 800.862.7919 to certify your TIN and avoid future Chapter 4 withholding.  

Qualified tax reporting

Qualified accounts are ones that are part of an education savings plan, an IRA, or other type of retirement plan.

For these types of accounts, we generally issue tax statements such as:

  • Form 1099-R (Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.)
  • Form 1099-Q (Payments From Qualified Education Programs (Under Sections 529 and 530))
  • Form 5498 (IRA Contribution Information)
  • Form 5498-ESA (Coverdell ESA Contribution Information)

If you own Ameriprise certificates, Columbia mutual funds, Ameriprise brokerage and/or Managed Accounts investments within your IRA (or other retirement plan), you have a Custodial IRA plan. Tax reporting for Custodial IRA plans is generated at a plan level instead of by individual account. We will mail you the following tax statements depending on the activity in your plan:

Form 5498
  • You will receive one Form 5498, reporting the aggregate Fair Market Value and contributions for all of the accounts within one Custodial IRA plan.
    • The account number on Form 5498 is the lowest account number within the plan that had a Dec. 31 Fair Market Value or reportable contributions for 2016.
    • If you have multiple plans, you will receive multiple forms, one for each plan.
    • See When can I expect to receive Form 5498 below to find out when we mail Form 5498 to you.
Form 1099-R
  • You will receive one Form 1099-R, reporting aggregate distribution information for all of the accounts within the Custodial IRA plan with the same distribution code8 in 2016.
    • You will receive a separate Form 1099-R for each different distribution code8 within your plan in 2016.
    • You will receive a separate Form 1099-R if some of your distributions had state income tax withheld and other distributions did not.
    • Additionally, you will also receive a separate Form 1099-R for each state if you had state income tax withheld for more than one state.
    • The account number on Form 1099-R is the lowest account number within the plan that had a distribution in 2016 for the reported distribution code.1

Note: If you own annuity accounts within an IRA or other retirement plan you can expect to receive a separate Form 5498 and/or Form 1099-R for any account with reportable activity in 2016. Each annuity account is a separate individual retirement plan.

  • Form 5498 for tax year 2016 is sent to you by Jan. 31, 2017, if you meet any of the following criteria in your IRA plan(s) during 2016:
    • Owned a traditional IRA, including a Rollover IRA or Beneficial (Inherited) IRA, SEP, SIMPLE or ROTH and had a value on Dec. 31, 2016.
    • Made 2016 reportable contributions to a traditional IRA, including a Rollover IRA or SEP, SIMPLE, or Roth IRA.
    • Recharacterized contributions into a traditional IRA, SEP, SIMPLE or Roth IRA plan Converted a traditional IRA, SEP or SIMPLE to a Roth IRA
    • Rolled money into a traditional IRA, including a Rollover or, SEP, SIMPLE or Roth IRA.

Note: Clients reported as deceased in calendar year 2016 receive a Form 5498 with a zero Fair Market Value (FMV).

  • Form 5498 for tax year 2016 is sent to you by May 31, 2017, if you had any of the following activity in your plan(s) between Jan. 1, 2017 and April 18, 20173:
    • Made Traditional IRA or Roth IRA contributions for 2016
    • Had contribution designations changed to or from the 2016 tax year
    • Have updated fair market value (FMV) and required minimum distribution (RMD) amounts and hard-to-value asset information, if applicable9

See the question above for more information about Form 5498 for Custodial plans.

The IRS has reporting requirements for investments that are considered difficult to value. These are generally not actively traded in the marketplace or on an established market and may not have current pricing or values readily available at the time when transactions or tax reporting occur. Investments include:

  • Stocks or other ownership interests in a corporation
  • Short or long-term debt obligations
  • Ownership interest in a limited liability company (LLC), partnership, trust, or other similar entity
  • Real estate
  • Option contracts or similar products
  • Other assets that don’t have readily available values

Financial institutions use the most current prices available in the industry for transactions and tax reporting involving these investments. These types of investments are held in Custodial IRA plans within Ameriprise brokerage accounts or Managed Accounts investments.

Form 5498 has Lines 15a, FMV of certain specified assets, and 15b, Code(s), to report additional information about the investments that are difficult to value.

  • Line 15a reports the combined value of hard-to-value investments within your IRA plan.
    • Line 15 may be populated with either a dollar amount or $0.00
    • The amount in line 15a is included in your Line 5, Fair Market Value of account.
  • Line 15b reports up to two of the codes below to identify what type of investment(s) your account holds:
    • A — Stock or other ownership interest in a corporation that is not readily tradable on an established securities market.
    • B — Short or long-term debt obligation that is not traded on an established securities market.
    • C — Ownership interest in a limited liability company or similar entity (unless the interest is traded on an established securities market).
    • D — Real estate.
    • E — Ownership interest in a partnership, trust, or similar entity (unless the interest is traded on an established securities market).
    • F — Option contract or similar product that is not offered for trade on an established option exchange.
    • G — Other asset that does not have a readily available FMV.
    • H — If your account holds more than two of the above investments (codes A-G), code H will be reported

Note: If your IRA plan includes hard-to-value assets, the information will be reported on Form 5498 and mailed to you by May 31, 2017. On the year-end tax statement mailed to you by Jan. 31, 2017, lines 15a and 15b will be blank.

The hard-to-value assets reporting requirements provide you with additional details about the value of these types of investments within your IRA plan(s). Consult with a qualified tax professional to understand how this information may affect your tax return.

You may receive an updated Form 5498 even though you didn't make contribution changes if you own hard-to-value assets in your Custodial IRA plan because:

  • We don't have the valuation information available to populate Lines 15a and 15b in time to be included on the year-end statements. See the previous question for details. 
  • In some cases, we receive updated valuations for Dec. 31 after year-end statements have been mailed. Updated information will be incorporated into Form 5498, which will be mailed by May 31, 2017. This information may be useful for certain taxpayers, for example those taxpayers taking required minimum distributions.
Form 1099-R has a new distribution code “K” to report distributions and redemptions from hard-to-value assets within your Custodial IRA plan(s). Code “K” can be combined with other distribution codes 1, 2, 4, 7, 8, or G.
Generally, distributions from your IRA/tax-qualified retirement plan are reported as taxable on Form 1099-R. If you rolled over any amount of the distribution, you should receive Form 5498 reporting that amount as a rollover contribution in the receiving account and will need to report the rollover on your Form 1040 or Form 1040A (U.S. Individual Income Tax Return).
Request and complete Ameriprise Form 4216 (Request for Removal of an Excess for a Coverdell ESA, Roth IRA or traditional IRA) or Form 402453 (Request for Removal of an Excess for a SEP or SIMPLE IRA excess). You can request these forms from your financial advisor or by calling our customer service center at 800.862.7919.

The IRS requires that we code SEP or SIMPLE contributions in the calendar year that they are received. An employer may, however, report the contribution for the prior plan year when filing their tax return. For more information on the IRS requirements, please see Instructions for Participant on the back of Form 5498 Line 8 (SEP contributions) or Line 9 (SIMPLE contributions).

Please submit Ameriprise Form 591 (IRA Internal Recharacterization Request), which you can request from your financial advisor or by calling our customer service center at 800.862.7919.

For an overview of the tax see What is the 3.8% Net Investment Income Tax and does it apply to me? above.

Distributions from qualified retirement plans and education plans are not subject to the 3.8% tax. There will be no changes to tax reporting on Form 1099-R for distributions from these types of accounts:

  • Qualified retirement plans such as 401(k), 403(b), Keoghs, pensions, and profit sharing plans
  • Traditional, SEP, SIMPLE, Inherited or Roth IRAs
  • 529 Plans
  • Coverdell ESAs

For additional information, visit Questions and Answers on the Net Investment Income Tax on the IRS website.

Updated or amended tax reporting

A common reason you may receive an updated Form 1099-DIV is if an issuer of an investment you own changes the tax classification of the investment’s dividend payments, such as from an ordinary dividend to a qualified dividend or from an ordinary dividend to a return of capital, after your tax statements have been issued. This is known as income reclassification.

Issuers of Real Estate Investment Trusts (REITs), Unit Investment Trusts (UITs), UITs invested in REITs, Exchange Traded Funds (ETFs) or mutual funds investing in REITs, are most likely to change the tax classification of dividend payments after original tax statements have been issued. Because of this, if you own Ameriprise brokerage or managed accounts and/or mutual funds that hold these types of investments, you are more likely to receive updated tax statements. Most changes occur in February and March, although updates can occur at any time during the year.

If you own an investment likely to reclassify, you may want to speak to your tax advisor about the best timing for you to file your tax returns. Waiting to file your tax returns until late March or early April may help reduce the possibility of filing amended tax returns.

For more information, see Updated tax statements and income reclassifications.

"Covered" investments6:

  • We are required to report cost basis and holding period information, to you and the IRS, on "covered" investments or tax lots.
  • When cost basis is updated on our systems for covered tax lots, due to an income reclassification that changes your cost basis in the covered tax lot, and you sold investments affected by that cost basis adjustment, an amended Form 1099-B (Proceeds From Broker and Barter Exchange Transactions) will be sent to you and updates will be reported to the IRS.

"Noncovered" investments:

  • We are not required to report cost basis and holding period information to you or the IRS for “noncovered” investments or tax lots.
  • When cost basis is updated on our system for “noncovered” investments or tax lots, an amended Form 1099-B will generally not be sent to you.
  • You should report appropriate cost basis from your records on your tax return.

If you have already filed your 2016 tax return, you may need to refile using updated information on your updated tax statement(s).

Consult with a qualified tax professional to determine how the changes on your tax statement may affect your 2016 tax returns.

You may want to delay filing your tax returns until late March or early April to avoid re-filing if you own a security that is likely to reclassify.

 

Ameriprise is planning to apply new De Minimis1 Error Safe Harbor rules (passed by Congress in April 2016) that allow brokers not to send amended tax statements for changes of $100 or less ($25 or less for tax withholding changes) to clients and the IRS, beginning with updates to tax year 2016 statements Ameriprise will apply these rules to updates that occur after March 20, 2017. The following questions and answers provide additional information about these changes and this process.

Per the new rules:

  • Financial institutions don’t have to produce updated tax reporting to taxpayers or the IRS for changes of $100 or less ($25 or less for tax withholding changes)2.
  • You do not need to take any action. Ameriprise is planning to apply De Minimis Error Safe Harbor rule to nonqualified Ameriprise brokerage accounts and Managed Accounts investments, unless you elect to opt-out and receive all amendments.
  • You can:
    • Make an election to continue receiving tax statement corrections regardless of the amount of the change.
    • Decide, at any time, to revoke the election and no longer receive the corrections of $100 or less ($25 or less for tax withholding), if you properly notify us.
    • Choose to get a tax statement for a specific tax form, or a specific year, without making the election applicable to all of your potential corrections.

To learn how to make or revoke this election see questions How can I make sure that I receive corrected tax statements for my Ameriprise brokerage account or Managed Account investment regardless of the dollar amount of the change? and What if I elect to receive all amendments and later decide that I don’t want to get tax updates of $100 or less? below.

1 In this instance, de minimis is a threshold dollar amount. The threshold is used to determine whether or not we are required to produce a corrected tax statement and report corrected information to the IRS.

2 Taxpayers are not able to choose a different threshold amount.

Congress passed these rules so that taxpayers and the IRS would not have to contend with tax reporting changes for small dollar amounts, especially after tax returns have already been filed. Applying these rules eliminates smaller tax reporting updates that may not have substantially changed your tax liability. It also, reduces the instances that may cause you to refile your tax return, if you have already filed.

  • The rules are available for tax reporting updates beginning with the 2016 tax year (tax statements mailed in 2017)
  • Ameriprise plans to apply the De Minimis Error Safe Harbor rules for certain types of updates to 2016 tax reporting processed after March 20, 2017.
  • The rules are not available for tax corrections to tax reporting for tax years 2015 or earlier.
  • Once Ameriprise starts to apply these rules after March 20, 2017, clients will generally not receive an amendment, unless the change was over the threshold de minimis amounts above, or you elect to opt-out and receive all amendments. No action is required on your part unless make an election.

Most tax statement updates are a result of income reclassification or other changes from the investment issuers1. Delaying the application of the rules until March 20, 2017 allows time for most issuers to provide us with the updated or finalized tax information. We use this information to provide you and the IRS the most up to date and accurate tax reporting for filing your tax returns.

Additionally, applying these rules after March 20 eliminates smaller tax reporting updates that may not have substantially changed your tax liability and reduces the instances that may cause you to refile your tax return, if you have already filed.

The rules do not apply to original tax information reporting statements, which we are still required to send.

1 To learn more about income reclassification and tax updates see Investment types most likely to reclassify each year and Updated tax statements and income reclassification.

For tax year 2016 we will apply the rules only to tax statements for nonqualified Ameriprise® brokerage accounts and Managed Accounts investments. The following tax statements may be impacted:

  • 1099-B, Proceeds from Broker and Barter Exchange Transactions
  • 1099-DIV, Dividends and Distributions
  • 1099-INT, Interest Income
  • 1099-MISC, Miscellaneous Income
  • 1099-OID, Original Issue Discount

We will continue sending updates for any dollar amount1 for all other accounts, including IRAs and other retirement plans, education savings accounts, Ameriprise certificates, RiverSource annuities and insurance policies. We may start to apply the rules to these accounts in the future.

1 Per IRS rules we are not required to produce tax statement for any account where your reportable interest, dividend or original issue discount income is less than $10 during the year, unless your account was subject to backup withholding.

We will send updated tax reporting to you and the IRS in the following situations:

  • If the update is due to an intentional error, missing information on an original statement or failure to provide a tax statement.
  • If you didn’t receive an original tax statement because your income was less than $101, but the updated information results in income greater than $10.
  • For corrections to 2016 tax reporting for Columbia mutual funds, Ameriprise certificates, RiverSource annuities and life insurance policies, IRAs and other retirement plans or education savings plans2.
  • For corrections to tax statements for tax years 2015 and before for any accounts.
  • If you elect to opt-out and receive updated tax reporting.

Note: The IRS plans to provide additional guidance to you for these rules, so there may be changes in the future, but there is no estimated timeline for this guidance.

1 Per IRS rules we are not required to produce tax statement for any account where your reportable interest, dividend or original issue discount income is less than $10 during the year, unless your account was subject to backup withholding.

2 We may start to apply the rules to additional types of accounts in the future.

You can choose to receive corrected tax statements for any dollar amount by electing to opt out of the De Minims Error Safe Harbor rules. You may also subsequently decide to revoke your election at any time.

Election request must be submitted on the De Minimis Error Safe Harbor Rule Client Opt Out Election Form 113542 (available after Feb. 10, 2017) by each client whose taxpayer identification number (TIN) is listed on an Ameriprise brokerage account or Managed Accounts investment1.

To get a copy of the form you can contact:

  • Your financial advisor2
  • Client Service Center at 800.862.7919 and ask for Brokerage Service

Please complete Form 113542 and return it to your financial advisor or mail it to the address on the form.

  • Account numbers and tax statements for which the election should apply. If account numbers and statements are not specified we will apply the election to all accounts and statements1.
  • The calendar year the election applies to, or if the election applies to the current calendar year and all tax years going forward. Elections may apply retroactively, but not for any tax year prior to 2016. If calendar years are not specified we will apply the election to the current year and all future years2.

1 See Which tax statements will be impacted by the De Minimis Error Safe Harbor rules? above for more information on the accounts and statements that may be impacted.

2 Your advisor can’t make the election on your behalf unless you complete and sign Form 113542

If you’ve elected to opt out of the De Minimis Error Safe Harbor rules, you may revoke your election at any time. Once you revoke the election you’ll stop getting subsequent tax statement updates for changes of $100 or less ($25 or less for tax withholding).

The request to revoke your election can be made using De Minimis Error Safe Harbor Rule Client Opt Out Election Form 113542. See the previous question for more information.

No, You can either elect to receive all tax statement corrections or keep the default of not receiving any tax corrections unless they are for a change of more than $100 (more than $25 for tax withholding changes).

Any changes that are reported to you will also be reported to the IRS. You will need to consult with a qualified tax professional to determine if the updated tax information affects your specific tax situation.

Contact information

For more information about the topics in this article or to request Ameriprise forms:

  • Contact your financial advisor or qualified tax professional
  • If you don’t currently work with a financial advisor or tax professional, contact the Ameriprise Advisor Center at 800.297.2012 for assistance.
  • Call customer service at 800.862.7919

Review IRS publications and information on the IRS Website.