Additionally, many firms had to issue corrected 1099-Bs as a result of events occurring in January that ultimately affect the prior year's basis such as returns of capital or potential buy/sells that may trigger a wash sale.
The ability to reconcile a Form 1099-B with Form 8949 and even export it directly into a Schedule D, and
Firms should prepare for workflow changes and a jump in client inquiries, especially when they receive the new Form 1099-Bs containing cost basis information on equities sold in 2011.
Proactively communicating with clients about the changes to the new Form 1099-B that went into effect this year
Even if advisors have already reached out to clients about changes to Form 1099-B, many clients will need a reminder as to why they are receiving cost basis information and what they are responsible for reporting on their tax return.
By connecting with them, firms can potentially create a more holistic investment and tax-planning experience by using the Form 1099-B to include tax impact in assessing clients' financial picture.
31 /PRNewswire/ -- As investors begin receiving Form 1099-Bs this month from their brokers, they'll notice changes in the information provided, which not only may require added reporting to the IRS on their tax returns, but potentially may increase how much they owe in taxes if they weren't already reporting taxable mergers, according to CCH(R) Capital Changes analysts.
Form 1099-B is used for reporting proceeds of broker and barter exchanges.
Traditionally, Form 1099-B rules related to corporate mergers only applied with respect to cash received by shareholders, not mergers involving stock rather than cash," Stevie D.
According to Conlon, additions to the Form 1099-B for the 2004 tax year will focus on capturing and reporting information related to cross-border corporate actions known as corporate inversions, whereby U.
, 1099-Cs, 1099-DIVs -- 14 different form 1099s in all.