Instructions For Form 1099-B - 2006
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26Instructions for Recipient
credited to your account by a barter exchange. See Pub. 525, Taxable and
Brokers and barter exchanges must report proceeds from transactions to you
Nontaxable Income, for information on how to report this income.
and the IRS on Form 1099-B by January 31 of the year following the calendar
year of the transaction. Reporting is also required when your broker knows or
Box 4. Shows backup withholding. Generally, a payer must backup withhold at
has reason to know that a corporation in which you own stock has had a
a 28% rate if you did not furnish your taxpayer identification number to the
change in control or a substantial change in capital structure. You may be
payer. See Form W-9, Request for Taxpayer Identification Number and
required to recognize gain from the receipt of cash, stock, or other property
Certification, for information on backup withholding. Include this amount on
that was exchanged for the corporation’s stock. If your broker reported this
your income tax return as tax withheld.
type of transaction to you, the corporation is identified in the box below your
Box 5. Shows the number of shares of the corporation’s stock that you held
name and address on Form 1099-B.
which were exchanged in the change in control or substantial change in capital
Account number. May show an account or other unique number the payer
structure.
assigned to distinguish your account.
Box 6. Shows the class or classes of the corporation’s stock that were
Box 1a. Shows the trade date of the transaction. For aggregate reporting, no
exchanged in the change in control or substantial change in capital structure.
entry will be present.
Box 7. Shows a brief description of the item or service for which the proceeds
Box 1b. For broker transactions, may show the CUSIP (Committee on Uniform
or bartering income is being reported. For regulated futures contracts and
Security Identification Procedures) number of the item reported.
forward contracts, “RFC” or other appropriate description may be shown.
Box 2. Shows the aggregate proceeds from transactions involving stocks,
Regulated Futures Contracts:
bonds, other debt obligations, commodities, or forward contracts. Losses on
forward contracts and changes in control or substantial change in capital
Box 8. Shows the profit or (loss) realized on regulated futures or foreign
structure are shown in parentheses. This box does not include proceeds from
currency contracts closed during 2006.
regulated futures contracts. The broker must indicate whether gross proceeds
Box 9. Shows any year-end adjustment to the profit or (loss) shown in box 8
or gross proceeds less commissions and option premiums were reported to
due to open contracts on December 31, 2005.
the IRS. Report this amount on Schedule D (Form 1040), Capital Gains and
Losses. However, if box 12 is checked, you cannot take a loss on your tax
Box 10. Shows the unrealized profit or (loss) on open contracts held in your
return based on gross proceeds from an acquisition of control or substantial
account on December 31, 2006. These are considered sold as of that date.
change in capital structure reported in box 2. Do not report this loss on
This will become an adjustment reported in box 9 in 2007.
Schedule D (Form 1040). The broker should advise you of any losses on a
Box 11. Boxes 8, 9, and 10 are all used to figure the aggregate profit or (loss)
separate statement.
on regulated futures or foreign currency contracts for the year. Include this
Box 3. Shows the cash you received, the fair market value of any property or
amount on your 2006 Form 6781.
services you received, and/or the fair market value of any trade credits or scrip
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