Your broker is responsible for providing you and the IRS with Form 1099-B (Proceeds from Broker and Barter Exchange Transactions). This form includes crucial information such as the date of sale, gross proceeds, and cost basis for stocks, bonds, mutual funds, and other investment assets. Forms 1099-B with transaction details will be attached to your tax return and e-filed.
At TFX, we report each stock sale as a separate transaction. The first 10 transactions are covered by the Premier flat fee. However, you can group them and we will report aggregate amounts per institution within eight groups:
Short-term covered with basis reported to the IRS
Short-term covered with basis not reported to the IRS
Short-term non-covered with basis reported to the IRS
Short-term non-covered with basis not reported to the IRS
Long-term covered with basis reported to the IRS
Long-term covered with basis not reported to the IRS
Long-term non-covered with basis reported to the IRS
Long-term non-covered with basis not reported to the IRS
Typically, your annual statement will have a summary that includes the total sale amount and total cost basis for both long-term and short-term brokerage transactions. In such cases, there is no additional charge since we will attach the provided documents to your tax return.
If summaries are not available and it requires extensive manual work for our tax preparers (such as tallying scanned images of transactions without subtotals), we will bill an hourly fee in increments of 15 or 30 minutes.
Note: if your brokerage transactions involve foreign currencies, it is important to convert the amounts to U.S. dollars using the appropriate exchange rates. The IRS provides guidelines for currency conversion, and you should use the rates specified by the IRS for accurate reporting. We use IRS yearly average exchange rates or year-end exchange rates recommended by the IRS whichever is lower. Refer to What exchange rate TFX uses when converting currencies? for more information.
Remember that regulatory requirements for reporting brokerage transactions may change over time, and additional rules or guidelines may apply depending on your specific circumstances. TFX is here to support you and ensure compliance with all applicable regulations.