Can I use a brokerage's preliminary tax statement for my tax filing appointment?

If he keeps the appointment, would the tax preparer charge him twice? Once for the initial appointment and then again when he comes back with the final documents?

My broker said something about foreign investments causing delays in getting final documents. Could that be why the statement is still preliminary?

Most tax preparers will just charge once for the complete return, regardless of how many visits it takes. But this varies by preparer, so it's worth asking up front. Some might charge a small fee for amendments if substantial changes need to be made due to differences between the preliminary and final documents. Foreign investments are indeed a common reason for delays in tax documents. Brokerages need to receive tax information from international companies, which often takes longer. Other causes for delay include REITs, partnership investments, or late corrections to previously issued tax information. It's actually better that they're taking the time to get it right rather than sending incorrect final documents that would need to be amended later.

Really? How does it know what's going to change between preliminary and final tax docs? Sounds kinda like magic to me.

Does it work with all brokerage statements or just specific companies? My statements are from Vanguard and they're always ridiculously complicated.

It's not predicting the future, but rather analyzing patterns based on historical data. The tool looks at what typically changes between preliminary and final statements for similar investment types. For example, certain investment categories (like REITs or foreign dividends) are more likely to have adjustments than others. It works with all major brokerages including Vanguard, Fidelity, Charles Schwab, and others. I used it with my E*TRADE statements which have a ton of dividend reinvestments and foreign tax credits. It was able to identify specific line items that had a high probability of changing in the final version, which was super helpful for planning purposes.

Wait, so this service just helps you talk to the IRS faster? What does that have to do with getting brokerage statements? The IRS doesn't issue those.

I've tried calling the IRS before and spent literally 3 hours on hold only to be disconnected. There's no way this actually works, right? Sounds too good to be true.

The service helps you talk to the IRS about your options when you're missing tax documents, which is exactly what OP is dealing with. The IRS can tell you the proper procedure for handling missing or delayed tax documents, whether you should file an extension, and what penalties might apply if you file with incorrect preliminary info. It absolutely works. I was skeptical too after multiple failed attempts to reach the IRS. I spent over 4 hours on hold once only to have the call drop. With Claimyr, I was talking to an IRS representative in under 20 minutes. They use technology that navigates the phone systems and waits on hold for you, then connects you once a human agent is available. It's especially useful during tax season when wait times are insane.

Is filing an extension difficult? Does it increase audit risk? This is actually my first year with investment income so I'm totally new to all this.

Filing an extension is actually super simple and NO, it doesn't increase your audit risk at all. That's a common misconception. The extension just gives you until October 15th to file the actual return. One important thing to remember though: an extension gives you more time to file, but not more time to pay. You still need to estimate what you'll owe and pay that amount by the April deadline to avoid penalties and interest. For most people with relatively stable income year to year, this isn't too difficult to estimate even without final investment documents.

This happened to me too! The preliminary statement didn't properly account for a merger that happened with one of my stocks. The final statement corrected the cost basis and changed my gain from $5,700 to $2,100. Huge difference.

Wow that's a massive difference! Makes me feel better about waiting for the final docs. Did you end up having to file an extension or did the final statement arrive in time?

Yes, his accountant uses professional software (I think ProSeries but I'm not 100% sure). That's a good idea - maybe we can at least get the process started. Dad's really worried about getting bumped from the appointment since his guy gets super busy this time of year.

That's perfect then. Just make sure the accountant knows upfront that you only have preliminary documents so they don't accidentally file before the finals arrive. They'll probably put some kind of flag or hold on the return in their system. The best part is that with most tax software, they can give your dad a pretty good estimate of his tax situation based on what they enter now, and then it only takes a few minutes to update once the final documents arrive. Much better than trying to reschedule during peak season!