this is froma an email from Ric Edelman www.ricedelman.com you can be on his email list too
Don't File Your Taxes Until March!
Avoid the risk that you'll have to file an amended return
Updated Dec. 2010
Many taxpayers rush to file their tax returns as quickly as possible. Ordinarily, that’s fine. But if you own mutual funds, don’t file your tax return before March 1!
Here’s why: Everyone involved in the financial industry — including employers, banks, insurance companies, mutual funds and brokerage firms — is required to mail W-2s and 1099s by January 31. But in each of the past four years, either because of last-minute changes in tax law or accounting reconciliations, many mutual fund companies and brokerage firms discovered that their 1099s contained incorrect information — which forced them to issue “amended” 1099s.
This was very expensive for the firms, which had to pay twice for printing, postage and mailing costs. It was also a huge headache for the investors who had already filed tax returns based on the original documentation. These hapless consumers found themselves forced to redo their returns and file amended tax returns, adjusting the amount they owed or were due in refunds — and paying their tax preparer additional fees to do the extra work.
It looks like 2010 may be the same. Therefore, if you own mutual funds, we recommend that you do not file your tax return before March 1. By then, any amended IRS forms are likely to arrive, potentially helping you avoid the hassle and costs of filing an amended return.
If you’re expecting a large refund, the delay might annoy you. But please note that you’re not supposed to be expecting a big check from the IRS. Remember that a big refund means you’ve overpaid your taxes — and you’ve been giving the IRS a tax-free loan for months.
See if you can correct this by reducing the amount of money that your employer withholds from your paycheck. Remember: Refunds are not gifts from the IRS, but simply a return of money that’s yours in the first place.
Edelman Financial Services (EFS) does not provide advice pertaining to tax matters. Information regarding tax matters which may be provided by EFS is of a general nature only, and is not to be construed as constituting specific advice. Such information can be provided only by a tax professional and EFS recommends that individuals consult a tax professional for advice concerning tax issues.