The IRS uses third-party information reporting on forms in the 1099 series to increase voluntary compliance and improve collections. Beginning in 2011, legislation requires reporting of income in two areas: payment card (credit, debit and certain electronic transactions) and securities basis reporting.
The links below take you to forms, instructions and background information related to the reporting requirements of payment cards and cost basis of securities sales. These regulations, notices and FAQs provide details on the implementation of Section 6050W of the Housing Assistance Tax Act of 2008 and of Section 6045(g) of the Energy Improvement and Extension Act of 2008.
Information Reporting on Payment Card and Third Party Network Transactions
- Form 1099-K and Instructions
- Understanding Your 1099-K
- Final Regulations Text (8/13/2010)
- FAQs on New Payment Card Reporting Requirements
- TD9496 Payment Card Regs (20100816)
- Notice 2011-42: payments made by third party settlement organizations (TPSO) are reportable and potentially subject to backup withholding.
- Notice 2011-71: guidance about obligations of payment settlement entities making payments to an offshore account.
- Notice 2011-78: Non application of Section 6050W to certain insurance arrangements
- Notice 2011-88 BWH Postponement (20111114)
- Notice 2011-89 Transitional Penalty Relief (20111114)
- Notice 2012-2 PSE Documentation Requirements (20121105)
- Notice 2013-56 Transitional Penalty Relief (20130923)
- Notice 2014-21 Virtual Currency (20140414)
- Notice 1430 Supplemental Information about Form 1099-K Backup Withholding (BWH)
Cost Basis Reporting on Securities Sales
- Form 1099-B
- Form 1099-B Instructions
- Form 1040 (Schedule D)
- Form 8949
- Press Release(10/12/2010): Final Regulations
- Cost Basis Reporting FAQs - Form 1040 Filers and Debt Instruments
- Basis Reporting by Securities Brokers and Basis Determination for Debt Instruments and Options; Reporting for Premium
- TD 9504: Basis Reporting by Securities Brokers and Basis Determination for Stock (final regulations, 10/18/2010)
- TD 9504: Securities Basis Regs Correction (20101207)
- TD 9616 : Brokers Instruments Options Regs (20130418)
- TD 9713: Reporting for Premium; Basis Reporting by Securities Brokers and Basis Determination for Debt Instruments and Options
- TD 9750: Reporting of Original Issue Discount on Tax-Exempt Obligations; Basis and Transfer Reporting by Securities Brokers for Debt Instruments and Options
- Notice 2011-56 : on issues relating to the basis of stock (06/22/11)
- Notice 2012-34 : Basis Reporting by Securities Brokers and Basis Determination for Debt Instruments and Options - Delay of the Proposed Effective Dates
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Note: The following initiatives have been repealed.
- Information Reporting by Government Entities on Certain Government Payments (3% Withholding)
- Information Reporting on Payments to Corporations and Payments of Gross Proceeds and With Respect to Property
- Information Reporting on Real Estate Rental Property Expenses Payments