2006 1099 Corrections

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LPL 1099’s for non-retirement type accounts will be mailed by February 15th.

LPL Financial (LPL) receives tax reporting information from investment providers and compiles this into a consolidated 1099 Tax Information Statement for each account. Mutual fund companies, Real Estate Investment Trusts (REITs) and other types of investments frequently reclassify distribution income after year-end. This means that the reported income from these investment types is more likely to change after the end of the year.

The Internal Revenue Service (IRS) generally requires LPL to mail the 1099 Tax Information Statement (Form 1099) to you by January 31, 2010. In an effort to reduce the number of 1099 corrections issued, LPL applied for and was granted an extension by the IRS. The extension period allows LPL to include this reclassified information in the tax forms you will receive.

As a result of this extension, the 1099 Tax Information Statement you receive from LPL will be mailed to you by February 15, 2010. Please be aware that you may receive corrected 1099 forms from LPL if your investment providers update their tax information after the initial mailing. If you held these types of investments, I would recommend that you wait to file your 2009 tax returns until the end of March 2010 in order to allow sufficient time for you to receive possible corrected information and avoid having to file amended tax returns.

Please note that this extension does not affect 1099-Rs from retirement-type accounts.

If you have any questions, please feel free to contact me.