Broker Check

Reporting Your Tax Info

FAC uses Folio Institutional as a custodian for our clients’ actively managed fee-based accounts. Folio's paperless platform helps our clients by reducing the amount of paper mailed each year. This also means that Folio does not mail out annual tax notices. You will receive an email directly from Folio any time new tax documents are posted. You can easily access these documents through their user-friendly website. 

DTP Tax Notice

Let FAC Do the Work for You

FAC offers a free, proprietary annual service that emails your Folio tax notices directly to your tax preparer. This service is called Direct Tax Notice Process (DTP). With this service, FAC will handle the forwarding of your tax documents, for Folio accounts only, directly to your named tax preparer. The service is free, and each client is given the opportunity to participate when opening their Folio account(s). If you opened your account before DTP was available and have not yet taken advantage of this free service, please contact us today to request a DTP Enrollment Form. 

Do It Yourself

If you’d rather forward your tax documents to your tax preparer on your own, simply follow the instructions below. We've prepared a review of which documents are due, when, and how to access them. If you have any questions at all about how to find a document or which documents you need to send, please contact us. We’re always here for you.

(Remember, whenever you are reviewing your tax information, it’s important to make sure you are looking at the correct account and tax year.)

January 31st 

Form 1099-R (Reports IRA distributions)

This form is for clients who own one or more IRAs and took distributions during the tax year in question. If you own one or more IRAs but did not take distributions, no actions are required of you.

To access your tax statement,

  1. Log in to your Folio account.
  2. Select Statements & Tax Records from the main drop-down menu.
  3. Click on Go.
  4. Select Tax Center.
  5. Choose Form 1099-R. 

To download the form onto your computer, right click on it and choose Save As. Once the document is saved, you can email a copy to your tax preparer, or print a copy and send it in the mail. 

Note: Those clients who made deductible and non-deductible contributions to their IRAs, or took constructive receipt of IRA assets and then re-deposited them within 60 days, may need to determine the amounts of their contributions. This information can generally be found on their bank statement history. It can also be found through Folio by selecting Transaction History from the main drop-down menu on your Folio account page. After you click on Go, you must enter the following search items:

  • Date Range: (Enter the previous year.)
  • Transaction Category: (Type “Deposits.”)

Click Search to pull up a list of your total deposits, along with a Result Summary. You will need to repeat this report for each IRA you hold with FAC.

February 28th

Consolidated Form 1099 (For taxable non-retirement accounts)

This form is for clients who have non-retirement accounts, such as individual or joint TODs, trusts, or corporate accounts. The IRS requires you to report income from these types of accounts, regardless of whether you took distributions or not. Any realized gains (including long-term, short-term, and dividends) will be reported to the IRS, so your tax preparer will need to know of these distributions and their type. 

Because FAC takes you directly to your own individual stocks, you will have more transactions that are visible, and thus reportable. Taking advantage of our lower cost platform means you will need to provide your tax preparer with two forms for each of your non-retirement accounts: a Form 1099 and a Closed Tax Lot Spreadsheet. Here’s a step-by-step tutorial for locating these forms: 

Form 1099

  1. Log in to your Folio account. 
  2. Look for the name of your non-retirement account. 
  3. Across the page, in the main drop-down menu, choose Statements & Tax Records.
  4. Click on Go, then select Tax Center. (The system defaults to the current tax year at top of screen.) 
  5. Click on Form 1099. 

To download the form onto your computer, right click on it and choose Save As. Once the document is saved, you can email a copy to your tax preparer, or print a copy and send it in the mail. 

Closed Tax Lot Spreadsheet

This document tells your tax preparer what amount was paid for any securities that were sold during the tax year. To access it,  

  1. Log in to your Folio account. 
  2. Look for the name of your non-retirement account. 
  3. Across the page, in the main drop-down menu, choose Statements & Tax Records.
  4. Click on Go, then select Tax Center. (The system defaults to the current tax year at top of screen.) 
  5. Click on Closed Tax Lot Spreadsheet. 

To download the form onto your computer, right click on it and choose Save As. Once the document is saved, you can email a copy to your tax preparer, or print a copy and send it in the mail. 

March 15th 

Schedule K-1 for Retirement Accounts (For Master Limited Partnerships)

For each Schedule K-1 you receive for a retirement account, simply add up all the net distributions of all the K-1s within each IRA plus any additional UBTI (Unrelated Business Taxable Income) that you may have (listed in Box 20{v}). If the combined total is less than $1,000, you DO NOT HAVE TO INCLUDE THIS INCOME ON YOUR TAX RETURN. This is typically the case for the majority of FAC clients. In the rare case that this income exceeds $1,000, please contact us by April 2nd of this year so that we may include this basis. 

Schedule K-1 for Non-retirement Accounts

For non-retirement accounts, such as individual or joint TODs, trusts, and corporate accounts, simply send your K-1 to your tax preparer, along with your Closed Tax Lot Spreadsheet. (See above for directions on accessing this spreadsheet.) 

May 31st

Form 5498 (Reports IRA contributions) 

This form is not needed to complete tax returns. It simply shows contributions made to an IRA for the respective tax year. 

Contributions for Last Year

FAC clients have until April 15 of this year to open and/or contribute to new IRAs for last year, or to make contributions to existing IRAs for last year. Please contact FAC or your tax preparer for contribution and earned income limits, as they may pertain to your situation.

Contributions Made By Check

For check deposits to be applied to last year’s IRA contributions, deposit envelopes must be postmarked by April 15 of this year, and the check must include the IRA account number. In addition, the respective tax year of the intended deposit must be written on the memo line of the check. If this instruction is not included on the memo line, the amount will be applied as this year’s contribution.  

Clients may mail contribution checks directly to Folio’s address below. Please also send an email notice to FAC at support@MyFAC.com, so that we may invest your contributions in your respective Allocation once it has been received by Folio. 

Folio Institutional
Attn: Cash Management
PO Box 10265
McLean, VA 22102

Electronic and Wire IRA Contributions

If you wish to make a contribution by wire or electronic deposit, such as an Electronic Funds Transfer (EFT), please send an email message to support@MyFAC.com or call us at 205-991-8484 or 1-866-353-8484.

Internal Transfer Contributions

To make a transfer from a taxable account at Folio to an IRA at Folio, please contact FAC at 205-991-8484 or 1-866-353-8484. Or send us an email at support@MyFAC.com. You must complete the Internal Account Transfer Request Form, which FAC will provide.