Robinhood begins delivering tax forms to customers after missing deadline

FILE PHOTO: The welcome screen for the Robinhood App is displayed on a screen
FILE PHOTO: The welcome screen for the Robinhood App is displayed on a screen in this photo illustration January 29, 2021. REUTERS/Brendan McDermid/Illustration

February 17, 2021

(Reuters) – Online brokerage app Robinhood Markets said it has started delivering tax forms and expects most customers to receive them by late Wednesday, after it missed an earlier deadline.

A 1099 is an Internal Revenue Service (IRS) form that brokerages and other financial institutions file to list their customers’ earnings and losses throughout the year.

“Due to some special processing requirements and delays with a vendor, some forms were delayed by one day,” a spokesperson for Robinhood said.

The app’s popularity got a boost last year from people who took to trading while they stayed at home due to the COVID-19 pandemic. This would be the first year that a large number of new retail investors would be receiving these forms.

The spokesperson said the company would provide “extra resources throughout this tax season to help people stay informed.”

Bloomberg reported earlier on Wednesday that the online brokerage had missed the deadline.

Robinhood drew the ire of many of its customers when it temporarily restricted trading in some of the stocks like GameStop Corp and Express Inc which were at the heart of a Reddit-fueled rally last month. The brokerage later said the move was necessary to meet clearinghouse-mandated deposit requirements.

(Reporting by Niket Nishant in Bengaluru; Editing by Shailesh Kuber)