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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
by others. A broker may include a U.S. or foreign person
or a governmental unit and any subsidiary agency.
You are considered a broker if:
•
You are an obligor that regularly issues and retires its
own debt obligations, or
•
You are a corporation that regularly redeems its own
stock.
However, for a sale, redemption, or retirement at an office
outside the United States, only a U.S. payer or U.S.
intermediary is a broker. See Regulations sections
1.6045-1(g)(1) and 1.6049-5(c)(5).
You are not considered a broker if:
•
You are a corporation that purchases odd-lot shares
from its stockholders on an irregular basis (unless facts
indicate otherwise),
•
You manage a farm for someone else, or
•
You are an international organization that redeems or
retires its own debt. See Regulations section 1.6045-1(a)
(1).
Reporting
How many transactions to report on each form.
Report each transaction (other than regulated futures,
foreign currency, or Section 1256 option contracts) on a
separate Form 1099-B. Report transactions involving
regulated futures, foreign currency, or Section 1256 option
contracts on an aggregate basis. However, you may report
these contracts on an aggregate basis on a separate
Form 1099-B for each type of contract.
How many forms to file for each transaction. Report
sales of each of the following types of securities on a
separate Form 1099-B, even if all three types were sold in
a single transaction.
•
Covered securities (defined later) with short-term gain
or loss.
•
Covered securities with long-term gain or loss.
•
Noncovered securities (securities that are not covered
securities) if you choose to check box 5 when reporting
their sale.
Closing transactions. In the case of an option, a
regulated futures contract, a securities futures contract, or
a forward contract, a sale includes any closing
transaction. A closing transaction is a lapse, an expiration,
a settlement, an abandonment, or other termination of a
position (which includes a right or an obligation under a
forward contract, a regulated futures contract, a securities
futures contract, or an option).
Example. For an option that is a covered security, that
also has a basis of zero in the option upon a closing
transaction, enter -0- in box 1e.
Substitute statements. Brokers that use substitute
statements may be able to report customer transactions
(stock sales (Form 1099-B), interest earned (Forms
1099-INT and 1099-OID), dividends (Form 1099-DIV),
and foreign taxes paid (Forms 1099-DIV and 1099-INT))
for the year on a single substitute statement. For details,
see Pub. 1179, General Rules and Specifications for
Substitute Forms 1096, 1098, 1099, 5498, and Certain
Other Information Returns, at
IRS.gov/Pub1179, which
provides the rules for substitute forms.
Additional information required for covered securi-
ties. For each sale of a covered security for which you are
required to file Form 1099-B, report the date of acquisition
(box 1b); whether the gain or loss is short-term or
long-term, and whether any portion of the gain or loss is
ordinary (box 2); cost or other basis (box 1e); the amount
of accrued market discount (box 1f); and the loss
disallowed due to a wash sale (box 1g). When selling a
noncovered security and reporting it on a separate Form
1099-B, you may check box 5 and leave boxes 1b, 1e, 1f,
1g, and 2 blank. If you check box 5, you may choose to
report the information requested in boxes 1b, 1e, 1f, 1g,
and 2 and will not be subject to penalties under section
6721 or 6722 for failure to report this information correctly.
Example. Your customer Arlo bought shares of stock
in ABC Corporation in April 2001, April 2023, and August
2023. The shares of stock bought in 2023 are covered
securities. The shares of stock bought in April 2001 are
noncovered securities. In June 2024, Arlo sells all of the
stock in a single transaction. Even though the stock was
sold in a single transaction, you must report the sale of the
covered securities on two separate 2024 Forms 1099-B
(one for the securities bought in April 2023 with long-term
gain or loss and one for the securities bought in August
2023 with short-term gain or loss). You must report the
sale of the noncovered securities on a third Form 1099-B
or on the Form 1099-B reporting the sale of the covered
securities bought in April 2023 (reporting long-term gain or
loss). You may check box 5 if reporting the noncovered
securities on a third Form 1099-B. If you check box 5, you
may leave boxes 1b, 1e, 1f, 1g, and 2 blank or you may
complete boxes 1b, 1e, 1f (if applicable), 1g (if applicable),
and 2 and not be subject to penalties under section 6721
or 6722 for failing to report this information correctly.
Short sales of securities. Do not report a short sale
entered into after 2010 until the year a customer delivers a
security to satisfy the short sale obligation, unless there is
backup withholding. See Backup withholding, later.
Disregard sections 1259 (constructive sales) and 1233(h)
(short sales of property that becomes worthless). Report
the short sale on a single Form 1099-B unless:
•
You are reporting both short-term and long-term gain or
loss from a short sale closed by delivery of covered
securities (as explained earlier under
How many forms to
file for each transaction),
•
The securities delivered to close the short sale include
both covered securities and noncovered securities (as
explained earlier under How many forms to file for each
transaction), or
•
There was backup withholding and other conditions
apply (see Backup withholding, later).
Report on Form 1099-B the relevant information about the
security sold to open the short sale, with the exceptions
described in the following paragraphs.
In box 1a, report the quantity of the security delivered to
close the short sale.
In box 1b, report the acquisition date of the security
delivered to close the short sale.
In box 1c, report the date the security was delivered to
close the short sale.
2
Instructions for Form 1099-B (2024)