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Instructions for Recipient
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<br />Common Instructions for Recipient
<br />Recipient's taxpayer identification number (TIN). For your protection, this form may
<br />show only the last four digits of your TIN (social security number (SSN), individual
<br />taxpayer identification number (ITIN), adoption taxpayer identification number (ATIN), or
<br />employer identification number (EIN)). However, the issuer has reported your complete
<br />TIN to the IRS.
<br />Account number. May show an account or other unique number the payer assigned to
<br />distinguish your account.
<br />Payer’s Routing Transit Number (RTN). A payer may include the RTN to identify the
<br />bank or financial institution where your account is held.
<br />Backup Withholding. Shows backup withholding. Generally, a payer must backup
<br />withhold if you did not furnish your taxpayer identification number. See Form W-9 and
<br />Pub. 505 for more information. Report this amount on your income tax return as tax
<br />withheld.
<br />Nominees. If this 1099 form includes amounts belonging to another person, you are
<br />considered a nominee recipient. You must file as the “payer” the respective Form 1099
<br />(DIV, INT, or OID) Copy A (with a Form 1096) to the IRS for each of the other owners
<br />as recipient(s) to show their allocable share of the income and you must furnish the
<br />respective Copy B Form(s) and amounts to each owner. A spouse is not required to file
<br />a nominee return to show amounts owned by the other spouse. See the General
<br />Instructions for Certain Information Returns.
<br />FATCA filing requirement. If the FATCA filing requirement box is checked, the payer
<br />is reporting on Form 1099 to satisfy its chapter 4 account reporting requirement. You
<br />also may have a filing requirement. See the Instructions for Form 8938.
<br />Keep tax documents for your records.
<br />1099-B Instructions for Recipient
<br />Brokers and barter exchanges must report proceeds from (and in some cases, basis
<br />for) transactions to you and the IRS on Form 1099-B. Reporting is also required when
<br />your broker knows or has reason to know that a corporation in which you own stock has
<br />had a reportable change in control or capital structure. You may be required to
<br />recognize gain from the receipt of cash, stock, or other property that was exchanged for
<br />the corporation’s stock. If your broker reported this type of transaction to you, the
<br />corporation is identified in box 1a.
<br />CUSIP number. Shows the CUSIP (Committee on Uniform Security Identification
<br />Procedures) number or other applicable identifying number.
<br />Applicable checkbox on Form 8949. Indicates where to report this transaction on
<br />Form 8949 and Schedule D (Form 1040), and which checkbox is applicable. See the
<br />instructions for your Schedule D (Form 1040) and/or Form 8949.
<br />Line 1a. Shows a brief description of the item or service for which amounts are being
<br />reported. For regulated futures contracts and forward contracts, “RFC” or other
<br />appropriate description may be shown. For Section 1256 option contracts, “Section
<br />1256 option” or other appropriate description may be shown. For a corporation that had
<br />a reportable change in control or capital structure, this box may show the class of stock
<br />as C (common), P (preferred), or O (other).
<br />Line 1b. This box may be blank if box 5 is checked or if the securities sold were
<br />acquired on a variety of dates. For short sales, the date shown is the date you acquired
<br />the security delivered to close the short sale.
<br />Line 1c. Shows the trade date of the sale or exchange. For short sales, the date shown
<br />is the date the security was delivered to close the short sale. For aggregate reporting in
<br />boxes 8 through 11, no entry will be present.
<br />Line 1d. Shows the cash proceeds, reduced by any commissions or transfer taxes
<br />related to the sale, for transactions involving stocks, debt, commodities, forward
<br />contracts, non-Section 1256 option contracts, or securities futures contracts. May show
<br />the proceeds from the disposition of your interest(s) in a widely held fixed investment
<br />trust. May also show the aggregate amount of cash and the fair market value of any
<br />stock or other property received in a reportable change in control or capital structure
<br />arising from the corporate transfer of property to a foreign corporation. Losses on
<br />forward contracts or nonSection 1256 option contracts are shown in parentheses. This
<br />box does not include proceeds from regulated futures contracts or Section 1256 option
<br />contracts. Report this amount on Form 8949 or on Schedule D (Form 1040) (whichever
<br />is applicable) as explained in the Instructions for Schedule D (Form 1040).
<br />Line 1e. Shows the cost or other basis of securities sold. If the securities were acquired
<br />through the exercise of a noncompensatory option granted or acquired on or after
<br />January 1, 2014, the basis has been adjusted to reflect your option premium. If the
<br />securities were acquired through the exercise of a noncompensatory option granted or
<br />acquired before January 1, 2014, your broker is permitted, but not required, to adjust
<br />the basis to reflect your option premium. If the securities were acquired through the
<br />exercise of a compensatory option, the basis has not been adjusted to include any
<br />amount related to the option that was reported to you on a Form W-2. If box 5 is
<br />checked, box 1e may be blank. See the Instructions for Form 8949, the Instructions for
<br />Schedule D (Form 1040 or), or Pub. 550 for details.
<br />Line 1f. Shows the amount of accrued market discount. For details on market discount,
<br />see the Schedule D (Form 1040) instructions, the Instructions for Form 8949, and Pub.
<br />550. If box 5 is checked, box 1f may be blank.
<br />Line 1g. Shows the amount of nondeductible loss in a wash sale transaction. For
<br />details on wash sales, see the Schedule D (Form 1040) instructions, the Instructions for
<br />Form 8949, and Pub. 550. If box 5 is checked, box 1g may be blank.
<br />Line 2. The short-term and long-term boxes pertain to short-term gain or loss and
<br />long-term gain or loss. If the “Ordinary” box is checked, your security may be subject to
<br />special rules. For example, gain on a contingent payment debt instrument subject to the
<br />noncontingent bond method is generally treated as ordinary interest income rather than
<br />as capital gain. See the Instructions for Form 8949, Pub. 550, or Pub. 1212 for more
<br />details on whether there are any special rules or adjustments that might apply to your
<br />security. If box 5 is checked, box 2 may be blank.
<br />Line 3. If checked, proceeds are from a transaction involving collectibles or from a
<br />Qualified Opportunity Fund (QOF).
<br />Line 4. Shows backup withholding. Generally, a payer must backup withhold if you did
<br />not furnish your TIN to the payer. See Form W-9 for information on backup withholding.
<br />Include this amount on your income tax return as tax withheld.
<br />Line 5. If checked, the securities sold were noncovered securities and boxes 1b, 1e, 1f,
<br />1g, and 2 may be blank. Generally, a noncovered security means: stock purchased
<br />before 2011, stock in most mutual funds purchased before 2012, stock purchased in or
<br />transferred to a dividend reinvestment plan before 2012, debt acquired before 2014,
<br />options granted or acquired before 2014, and securities futures contracts entered into
<br />before 2014.
<br />Line 6. If the exercise of a noncompensatory option resulted in a sale of a security, a
<br />checked “net proceeds” box indicates whether the amount in box 1d was adjusted for
<br />option premium.
<br />Line 7. If checked, you cannot take a loss on your tax return based on gross proceeds
<br />from a reportable change in control or capital structure reported in box 1d. See the Form
<br />8949 and Schedule D (Form 1040) instructions. The broker should advise you of any
<br />losses on a separate statement.
<br />Line 12. If checked, the basis in box 1e has been reported to the IRS and either the
<br />short-term or the long-term gain or loss box in box 2 will be checked. If box 12 is
<br />checked on Form(s) 1099-B and NO adjustment is required, see the instructions for
<br />your Schedule D (Form 1040) as you may be able to report your transaction directly on
<br />Schedule D (Form 1040). If the “Ordinary” box in box 2 is checked, an adjustment may
<br />be required.
<br />Line 13. Shows the cash you received, the fair market value of any property or services
<br />you received, and the fair market value of any trade credits or scrip credited to your
<br />account by a barter exchange. See Pub. 525.
<br />Lines 14-16. Show state(s)/local income tax information.
<br />Future developments. For the latest information about any developments related to
<br />Form 1099-B and its instructions, such as legislation enacted after they were published,
<br />go to www.irs.gov/Form1099B.
<br />Free File. Go to www.irs.gov/FreeFile to see if you qualify for no-cost online federal tax
<br />preparation, e-filing, and direct deposit or payment options.
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