Retail investors had the opportunity to make a lot of money thanks to recent spikes for GameStop, AMC, and other stocks. New traders who cashed out big gains in 2020 could face complications this tax season.
Many novice traders used the online trading app Robinhood. The company missed a Feb. 16 deadline to send those clients tax documents needed for this filing season.
For this episode of our weekly podcast, Talking Tax, we speak to Andy Phillips with H&R Block about what you should do if you are short in terms of tax documentation. Phillips tells Bloomberg Tax reporter David Hood that there are ways to avoid penalties from the IRS even if your broker is running behind.