A 1099-B reports proceeds from the sale or exchange of securities.
Brokers and barter exchanges must report proceeds from transactions to you and the IRS on Form 1099-B. Reporting is also required when your broker knows or has reason to know that a corporation in which you own stock has had a reportable change in control or capital structure. You may be required to recognize gain from the receipt of cash, stock or other property that was exchanged for the corporation’s stock. If your broker reported this type of transaction to you, the corporation is identified in box 8.
If certificates were sold through a broker, the broker sends the 1099-B to the recipient. If Dividend Reinvestment shares were sold, you must verify your address and request that a duplicate 1099-B be mailed to you.
For broker transactions, the form may show the CUSIP (Committee on Uniform Security Identification Procedures) number of the item reported.
Box 1A shows the trade date of the sale or exchange. For short sales, the date shown is the date the security was delivered to close the short sale. For aggregate reporting in boxes 9 through 12, no entry will be present.
Box 1B may be blank if box 6A is checked or if the securities sold were acquired on a variety of dates. For short sales, the date shown is the date you acquired the security delivered to close the short sale.
This box shows the trade date of the sale or exchange. For short sales, the date shown is the date the security was delivered to close the short sale.
This box reports the proceeds from your sale and will state net or gross proceeds.
This box shows the cost or other basis of securities sold.
The short-term and long-term boxes pertain to short-term gain or loss and long-term gain or loss.
Box 2A shows the aggregate cash proceeds from transactions involving stocks, bonds, other debt obligations, commodities or forward contracts. The form may show the proceeds from the disposition of your interest(s) in a widely held fixed investment trust. It may also show the aggregate amount of cash and the fair market value of any stock or other property received in a reportable change in control or capital structure arising from the corporate transfer of property to a foreign corporation. Losses on forward contracts are shown in parentheses. This box does not include proceeds from regulated futures contracts. The broker must indicate whether the sales price or the sales price less commissions (including transfer taxes) and option premiums was reported to the IRS. Report this amount on Form 8949 as explained in the instructions for Schedule D (Form 1040).
If Box 2B is checked, you cannot take a loss on your tax return based on gross proceeds from a reportable change in control or capital structure reported in box 2A. Do not report this loss on Form 8949 or Schedule D. The broker should advise you of any losses on a separate statement.
If checked, the basis in Box 1e has been reported to the IRS and one or more of the checkboxes in Box 2 must be checked. If Box 3 is checked on Form(s) 1099-B and NO adjustment is required, see the instructions for your Schedule D as you may be able to report your transaction directly on Schedule D. checked, an adjustment may be required.
Box 4 shows backup withholding. Generally, a payer must backup withhold if you did not furnish your taxpayer identification number to the payer. See Form W-9 for information on backup withholding. Include this amount on your income tax return as tax withheld.
Box 5 shows the amount of nondeductible loss in a wash sale transaction. For details on wash sales, see the Schedule D (Form 1040) instructions and Pub. 550.
If Box 6A is checked, the securities sold were non-covered securities and boxes 1B, 1C, 3 and 5 may be blank. Generally, a non-covered security means the following: a security other than stock; stock purchased before 2011; stock in most mutual funds and other regulated investment companies purchased before 2012; and stock purchased in or transferred to a dividend reinvestment plan before 2012.
If Box 6B is checked, the basis in box 3 has been reported to the IRS.
Box 7 shows the cash you received, the fair market value of any property or services you received, and the fair market value of any trade credits or scrip credited to your account by a barter exchange. See Pub. 525.
Box 8 shows a brief description of the item or service for which the proceeds or bartering income is being reported. For regulated futures contracts and forward contracts, “RFC” or other appropriate descriptions may be shown. For a corporation that had a reportable change in control or capital structure, this box may show the class of stock as C (common), P (preferred) or O (other).
Your 1099B Form may show an account or other unique number the payer assigned to distinguish your account.
For your protection, the 1099-B form may show only the last four digits of your social security number (SSN), individual taxpayer identification number (ITIN) or adoption taxpayer identification number (ATIN). However, the issuer has reported your complete identification number to the IRS and, where applicable, to state and/or local governments.
As a result of the 2011 Cost Basis Reporting requirements, the only additional modifications to the IRS Form 1099B is the addition of Box 1d Stock or other Symbol and Box 1e Quantity Sold. In order to streamline shareholder reporting, EQ has produced a Combined 1099B Form, which will detail every covered and uncovered sales transaction for a particular company on a single 1099B Form. In effect, a shareholder will receive one EQ Combined 1099B Form for each group of transactions for a particular company, rather than one Form for each separate sales transaction. The boxes on the IRS 1099B form have been denoted on EQ’s Combined 1099B Form for ease of use. All other required information on AST’s Combined 1099B Form remains the same, except for Symbol and Quantity Sold as previously noted. Please reference the IRS site for updated information.
The IRS Form 1099-B that is currently distributed with proceeds checks (Check/1099 Combo) will no longer be distributed throughout the year when sales are made. After the tax reporting year, EQ provided IRS Form 1099-B at year-end only. For example, taxable transactions in 2016 will produce a 2016 1099-B, which will be mailed by Feb. 15, 2017.