advertisement
advertisement

Robinhood is in another PR pickle as users demand late 1099 tax forms

The company is in another jam ahead of its highly anticipated IPO.

Robinhood is in another PR pickle as users demand late 1099 tax forms
[Photo: rawpixel; TheDigitalArtist/Pixabay]

Robinhood, the popular free trading platform that felt the wrath of Hades last month after abruptly restricting GameStop trading, is under fire once again—this time from users who haven’t gotten their 1099 tax forms.

advertisement
advertisement

The forms are used to report miscellaneous income including gains from the stock market, and their postmark deadline for issuers is January 31, according to the Internal Revenue Service.

But according to a quick scroll on social media, many Robinhood traders are still empty-handed:

advertisement

advertisement

Compounding the discontent was the fact that, as observed by Twitter users, wording on the Robinhood website appeared to change from promising the forms “by February 16th” to “starting February 16th.” On Reddit, some traders claimed they recently received emails saying their 1099s would be ready even later, “by March 16th.”

The delays could affect a record number of at-home investors this year who will be wrangling the complicated documents for the first time, as many began dabbling in the stock market during the coronavirus pandemic, whether out of boredom or to subsidize lower wages. According to Bloomberg Intelligence data, almost a quarter of all 2020 stock market trades were made by retail investors, up 55% from 2019.

advertisement

Reached for comment, a Robinhood spokesperson provided this statement to Fast Company:

“We have started delivering 1099s to customers and expect the vast majority of customers receiving 1099s to see them in their account by tonight. Due to some special processing requirements and delays with a vendor, some forms were delayed by one day. We also know that this may be the first year many customers receive these forms and we’ll be providing extra resources throughout this tax season to help people stay informed.”

Robinhood is no stranger to public snafus, as its January decision to restrict the purchasing of stocks exhibiting “recent volatility,” including those of skyrocketing companies GameStop and AMC, drew furious backlash from the masses. Multiple members of Congress called for investigations into the move, including representative Alexandria Ocasio-Cortez and senators Ted Cruz and Elizabeth Warren. Days later, the company explained it was forced to halt trading due to a liquidity crisis, during which it scrambled to raise billions of dollars in emergency funding to keep the platform running.

The company is set to ring its IPO bell in a highly anticipated public debut later this year.

advertisement
advertisement
advertisement