Instructions for Recipient
Brokers and barter exchanges must report proceeds from (and in some
cases, basis for) 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 1a.
Recipient's identification number. For your protection, this form may
show only the last four digits of your social security number (SSN),
individual taxpayer identification number (ITIN), adoption taxpayer
identification number (ATIN), or employer identification number (EIN).
However, the issuer has reported your complete identification number to
the IRS.
Account number. May show an account or other unique number the payer
assigned to distinguish your account.
CUSIP number. Shows the CUSIP (Committee on Uniform Security
Identification Procedures) number or other applicable identifying number.
Applicable check box on Form 8949. Indicates where to report this
transaction on Form 8949 and Schedule D, and which check box is
applicable. See the instructions for your Schedule D and/or Form 8949.
Box 1a. Shows a brief description of the item or service for which amounts
are being reported. For regulated futures contracts and forward contracts,
“RFC” or other appropriate description may be shown. For Section 1256
option contracts, "Section 1256 option" or other appropriate description
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).
Box 1b. This box may be blank if box 5 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.
Box 1c. 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 8 through 11, no entry will be present.
Box 1d. Shows the cash proceeds, reduced by any commissions or
transfer taxes related to the sale, for transactions involving stocks, debt,
commodities, forward contracts, non-Section 1256 option contracts, or
securities futures contracts. May show the proceeds from the disposition
of your interest(s) in a widely held fixed investment trust. 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 or non-Section 1256 option
contracts are shown in parentheses. This box does not include proceeds
from regulated futures contracts or Section 1256 option contracts. Report
this amount on Form 8949 or on Schedule D (whichever is applicable) as
explained in the instructions for Schedule D.
Box 1e. Shows the cost or other basis of securities sold. If the securities
were acquired through the exercise of a non-compensatory option granted
or acquired on or after January 1, 2014, the basis has been adjusted to
reflect your option premium. If the securities were acquired through the
exercise of a non-compensatory option granted or acquired before January
1, 2014, your broker is permitted, but not required, to adjust the basis to
reflect your option premium. If the securities were acquired through the
exercise of a compensatory option, the basis has not been adjusted to
include any amount related to the option that was reported to you on a
Form W-2. If box 5 is checked, box 1e may be blank. See the Instructions
for Form 8949, Instructions for Schedule D, or Pub. 550 for details.
Box 1f. Shows W for wash sale, C for collectibles, or D for market
discount.
Box 1g. Shows the amount of nondeductible loss in a wash sale
transaction or the amount of accrued market discount. When the sale of a
debt instrument is a wash sale and has accrued market discount, code
“W” will be in box 1f and the amount of the wash sale loss disallowed will
be in box 1g. For details on wash sales and market discount, see Schedule
D (Form 1040) instructions and Pub. 550.
Box 3. If checked, the basis in box 1e has been reported to the IRS and
one of the check boxes in box 2 must be checked. If box 3 is checked on
Form(s) 1099-B and NO adjustment is required, see instructions for your
Schedule D as you may be able to report your transaction directly on
Schedule D.
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. If checked, the securities sold were noncovered securities and
boxes 1b, 1e, and 2 may be blank. Generally, a noncovered security
means: stock purchased before 2011, stock in most mutual funds
purchased before 2012, stock purchased in or transferred to a dividend
reinvestment plan before 2012, debt acquired before 2014, options
granted or acquired before 2014, and securities futures contracts entered
into before 2014.
(Instructions continued on the back of Copy 2.)