Instructions For Form 1099-B - 2018 (Page 3 of 11) in pdf

on the tax information statement provided to the TIH and

Foreign currency. If the purchase amount or sales

is not required to be included in box 5 on the Form

proceeds are paid in foreign currency, you must report the

1099-DIV. See Regulations section 1.671-5(e) for a

amount of foreign currency in U.S. dollars. Generally, you

complete list of the items of information that must be

must determine the reportable amount (other than

included in the statement to the TIH.

amounts representing accrued interest or original issue

discount) as of the date you receive, credit, or make the

Acquisition of control or substantial change in capi-

payment, whichever applies, at the spot rate or by

tal structure. File Form 1099-B for each customer who

following a reasonable spot rate convention, such as a

received cash, stock, or other property from a corporation

month-end spot rate or a monthly average spot rate.

that you know, or have reason to know based on readily

When reporting the purchase or sale of a security traded

available information, must recognize gain under section

on an established securities market, you must determine

367(a) from the transfer of property to a foreign

the U.S. dollar amounts to be reported (other than

corporation in an acquisition of control or substantial

amounts representing accrued interest or original issue

change in capital structure reportable on Form 8806.

discount) as of the settlement date, at the spot rate or by

Readily available information includes information from a

following a reasonable spot rate convention. See

clearing organization, such as the Depository Trust

Regulations section 1.6045-1(d)(8).

Company (DTC), or from information published on the IRS

website.

Generally, payments of foreign currency amounts

representing accrued interest or original issue discount

Go to IRS.gov and enter keyword “Form 8806” in

must be translated using the average rate for the interest

the upper right corner to find information on the

TIP

accrual period, although certain customers may elect to

IRS website.

translate such amounts using the spot rate on the last day

of the interest accrual period. See Regulations sections

You are not required to file a second Form 1099-B for a

1.988-2(b)(2) and 1.6045-1(n)(4)(v).

customer who received only cash for stock acquired in an

acquisition of control if you report the cash as proceeds

Substitute payments. Do not report substitute

from a sale on another Form 1099-B. You also are not

payments in lieu of dividends and tax-exempt interest on

required to file Form 1099-B for a customer who is an

Form 1099-B. Instead, report these payments in box 8 of

exempt recipient (under Regulations section 1.6045-1(c)

Form 1099-MISC, Miscellaneous Income. See section

(3)(i) or 1.6043-4(b)(5)). For a list of exempt recipients,

6045(d) and the Instructions for Form 1099-MISC.

see the 2018 Instructions for Form 1099-CAP.

Stock options granted in connection with the per-

Enter in box 1d the aggregate amount of cash and the

formance of services. If an employee, former

fair market value (FMV) of any stock and other property

employee, or other service provider, in connection with

received in exchange for stock held in your custody. Also,

the performance of services, obtains substantially vested

check box 7.

shares of stock from the exercise of a stock option, and

In box 1a, show the corporation's name and the

sells that stock through a broker on the same day, then

number of shares of the corporation's stock you held that

the broker may not be required to report the sale on Form

were exchanged. Also enter the class or classes of stock

1099-B. For details, see Rev. Proc. 2002-50, which is on

(for example, preferred, common, etc.) that were

page 173 of Internal Revenue Bulletin 2002-29 at

exchanged, whether for cash or other property.

IRS.gov/pub/irs-irbs/irb02-29.pdf.

Abbreviate the class to fit the entry. For example, enter

Partnership sale. Form 8308, Report of a Sale or

“C” for common stock, “P” for preferred, or “O” for other.

Exchange of Certain Partnership Interests, does not have

Also abbreviate any subclasses.

to be filed if, under section 6045, a return is required to be

Leave the other numbered boxes and the CUSIP

filed by a broker on Form 1099-B for the transfer of the

number box blank unless you are required to file a Form

partnership interest.

1099-B to report proceeds you paid to the customer from

Exceptions. Brokers are not required to file, but may file,

the acquisition of control or substantial change in capital

Form 1099-B for the following.

structure and you choose to file and furnish one Form

1099-B for amounts reported under both Regulations

1. Sales for exempt recipients, including the following.

sections 1.6045-1 and 1.6045-3. If you choose to combine

a. Charitable organizations.

the reporting for both, do not combine other transactions

b. IRAs.

the customer may have had during the year with the

c. Archer MSAs and health savings accounts (HSAs).

reporting of the acquisition of control or change in capital

structure. Also, in box 1e, report the total basis of the

d. The United States or any state or a political

customer's stock. Do not enter an amount in box 1e that is

subdivision of the United States or any state.

greater than the amount entered in box 1d.

e. Corporations. However, see

Identifying a

Cash on delivery account. For a sale of securities

corporation, later, for instructions about how to know

through a “cash on delivery” or similar account, only the

whether a customer is a corporation for this purpose. Also,

broker that receives the gross proceeds from the sale

you must file Form 1099-B for the sale of a covered

against delivery of the securities sold is required to report

security (defined later) by an S corporation if the S

the sale. However, if such broker's customer is a

corporation acquired the covered security after 2011.

“second-party broker” that is an exempt recipient, only the

2. Sales initiated by dealers in securities and financial

second-party broker is required to report the sale.

institutions.

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Instructions for Form 1099-B (2018)

Instructions For Form 1099-B - 2018 Page 3

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