If a broker in the US does not provide Form 1099 by its due date (January 31), what penalty do they face, and can the client be compensated?

Question

https://www.investopedia.com/terms/f/form1099div.asp (mirror) says:

Banks, investment companies, and other financial institutions are required to provide taxpayers with a 1099-DIV by Jan. 31 each year.

However, I see in my Fidelity brokerage account that the Form 1099-DIV is not available yet:

We're waiting for final tax information from multiple issuers. Your form is delayed because we're waiting for information from ISHARES CALIFORNIA MUNI BOND ETF(CMF), VANGUARD WHITEHALL FDS HIGH DIV YLD(VYM), and 3 more issuers. We'll email you as soon as this form is available.

If a broker in the US does not provide Form 1099 by its due date (January 31), what penalty do they face, and can the client be compensated?

Craig W · Answer

It looks like because it's a consolidated Form 1099 (including 1099-B information), they get the February 15 (February 16 this year) deadline instead of January 31 (February 1 this year). From the IRS (my emphasis added):

Due date for certain statements sent to recipients. The due date for furnishing statements to recipients for Forms 1099-B, 1099-S, and 1099-MISC (if amounts are reported in box 8 or 10) is February 15, 2022. This also applies to statements furnished as part of a consolidated reporting statement.

And as your screenshot shows, Fidelity is waiting for information from other funds, so it's not entirely their fault. However, I share your frustration, as you can go to the Tax Info (Year-to-Date) tab of the account in question, and see exactly what your 1099 is going to show (including qualified dividends, section 199A dividends, foreign tax paid, etc.), so I'm not sure why they take so long.

If a broker in the US does not provide Form 1099 by its due date (January 31), what penalty do they face, and can the client be compensated?

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