UNDERSTANDING THE NEWCONSOLIDATED FORM 1099A Guide for Registered Investment Advisors

The Consolidated Form 1099 is ChangingHere’s what you need to know:

Why these changes will be beneficial to your clients as taxpayers and investors:

The Consolidated Form 1099 will

include all the information we have on file

for your clients at the time we prepare

the forms. But your clients are ultimately

responsible for the accuracy of their tax

returns.

The following are examples

of what your clients can expect

to see on the new forms. »

Important

▪ The new and improved layout allows your clients

to navigate the form more quickly.

▪ The information is presented in an easier-to-read

format, to help with tax filing.

▪ Additional tax-related information has been included

to help simplify your clients’ tax preparation.

December 2012

Your clients will notice that the Consolidated Form 1099 they receive for 2012 year-end tax reporting will have

a different look. We want you to know about these changes now, so you can better service your clients during

tax-filing season.

2 | Understanding the New Consolidated Form 1099

Summary Pages Provide a Complete Picture of Account Activity

Reportable Summary Page

▪ A summary of your clients’ possible tax forms, including the

1099-DIV, 1099-B, 1099-INT, 1099-MISC, and 1099-OID,

is delivered all in one place.

▪ All form sections are displayed, even if there is no reportable

information, so your clients see a complete overview of their

accounts.

Summary Pages

Reportable Summary Page

Sample form image for informational purposes only.

If you have any questions, please contact your Service Team at 800-431-3500. | 3

Supplemental Summary Page

▪ A snapshot of the additional information that TD Ameritrade does not report to the Internal Revenue Service (IRS)

is now provided for reference.

▪ Highlights include:

▪ Interest payments ▪ Short sales

▪ Options transactions ▪ Other useful information

▪ For your clients’ convenience, the Supplemental Summary can be found on page two of the Consolidated

Form 1099.

Summary Pages (continued)

Supplemental Summary Page

Sample form image for informational purposes only. Although options transactions are displayed, per IRS regulations cost basis for options and fixed-income securities are not required to be reported until tax year 2014.

4 | Understanding the New Consolidated Form 1099

The 1099-DIV is Reorganized to Make Reconciling Accounts Easier

▪ Payments of dividends and distributions will be shown by CUSIP

and sorted by pay date, rather than by income type.

▪ Tax-exempt interest dividends from mutual funds or regulated

investment companies (RICs) will now be reported on the 1099-DIV,

instead of the 1099-INT.

▪ State income tax withheld will now be reported, where applicable.

1099-DIV

1099-DIV

Sample form image for informational purposes only.

Payments will be grouped by pay date

to assist clients when reconciling back

to original payments.

Payments by Pay Date

All applicable information will be displayed

under the CUSIP, with detailed allocations

based on the distribution date.

New Sorting by CUSIP

Transaction types, including qualified dividends, foreign tax

withheld, and others, are indicated for each security, to make

it easier for clients to track back to their original statements.

Transaction Type

If you have any questions, please contact your Service Team at 800-431-3500. | 5

The 1099-B Gives a Stronger View of Account History at the Security Level

▪ Wash sale information will now be included

as a separate line item within the trade details

of the 1099-B.

▪ The display of non-covered cost basis

information is optional, and the default

is not to display this information. To review

your firm’s current election, visit the cost basis

preference page on Veo.

1099-B

1099-B

The appearance of the form has been updated

for easier viewing, while still being organized in

subsections that clearly define the holding term

and whether or not basis data has been reported

to the IRS.

Sample form image for informational purposes only.

There is an updated location for finding

wash sale information.

Wash Sale

The shading of this area indicates that TD Ameritrade

will not report this information to the IRS.

Columns Not Reported

Trades will be organized by CUSIP to group all

activity, instead of being segregated on a trade

date basis.

Updated Sorting

The total amount of the gain or loss for each

section will be bolded. Totals will not reflect wash

sale disallowances.

Realized Gain or Loss

6 | Understanding the New Consolidated Form 1099

The 1099-INT Has Been Updated to Aid in Tax Preparation

▪ For 2012, the IRS has split apart the reporting for tax-exempt

dividends and tax-exempt interest. Tax-exempt dividends will

now be shown on the 1099-DIV. Tax-exempt interest will remain

on the 1099-INT.

▪ State taxes withheld will now be reported, where applicable.

1099-INT

1099-INT

Sample form image for informational purposes only.

Each transaction type is shown

for each pay date.

Transaction TypeInterest payments will be grouped by pay date to

assist clients when reconciling back to the original

payments as shown on their statements.

Interest Payments

If you have any questions, please contact your Service Team at 800-431-3500. | 7

Supplemental Information from Mutual Funds and Unit Investment Trusts Is Now Included

▪ All or a portion of any income that is exempt from state

and local taxes will be provided, if it’s available at the time

the Consolidated Form 1099 is processed.

▪ The reporting will now show a breakout of the underlying

fund and where income was sourced.

▪ This information is provided to your clients for reference

only. It will not be reported to the IRS.

Mutual Funds and Unit Investment Trusts

Mutual Funds and Unit Investment Trusts

Sample form image for informational purposes only.

TD Ameritrade is not responsible for payment reallocations that result in the issue of a corrected Consolidated Form 1099, and will not be held liable for any fees incurred for the refiling of a tax form.

TD Ameritrade does not provide tax advice. We suggest that you seek the advice of a tax advisor with regard to your personal circumstances.

TD Ameritrade Institutional, Division of TD Ameritrade, Inc., member FINRA/SIPC/NFA. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank. © 2012 TD Ameritrade IP Company, Inc. All rights reserved. Used with permission.

TDAI 2581 BR 12/12

New End Notes Provide Information that May Help Your Clients when Filing

End Notes

End Note Indicator

Keep this brochure handy as a reference during tax-filing season.

▪ End notes may include details on a reclassification

from a mutual fund or Real Estate Investment Trust,

explanations of Widely Held Fixed Investment Trusts

(WHFITs as shown), or other scenarios.

▪ Corresponding details for end notes will appear

at the end of the Consolidated Form 1099, before the

IRS instructions.

Sample form image for informational purposes only.

An end note indicator will appear in the

“Transaction Type” column as a superscript.

End Note Indicator