Tax Reporting and Form 1099-B

Your clients will experience the effects of the new cost basis legislation when they receive the redesigned Form 1099-B early in 2012 for year-end 2011 transactions. For the first time, custodians will report cost basis information on covered securities to the IRS as well as to taxpayers. For tax year 2011, Schwab will report cost basis for equities acquired on or after January 1, 2011. The following year, Schwab will report cost basis on mutual funds, DRIP shares and ETFs acquired on or after January 1, 2012.

Electronic Delivery Available for Form 1099 Composite

Early this year your clients will receive Schwab’s updated Form 1099 Composite with year-end gain/loss information. Form 1099 Composite is now available through eDelivery (e1099). You can help your clients get their 1099s faster by informing them about electronic delivery and encouraging their enrollment at schwabadvisorcenter.com. Here’s how:

  1. Select the Profiles tab from Client & Account Servicing.
  2. Click the eDelivery Enrollment and Status button.
  3. Choose the account or accounts you wish to enroll.
  4. Click the Start Enrollment button. This will trigger an automated email to your clients with instructions on how to sign up for eDelivery.

Client Toolkit

The toolkit includes a sample email for your clients that you can easily personalize. In addition, you may wish to share the following with your clients:

 

Guide to Tax Reporting
Requirements

gallery thumbnail DOWNLOAD >
 

How-to-Read
1099 Guide

gallery thumbnail DOWNLOAD >

1099 Online
Demo

gallery thumbnail VIEW >

Revised 1099 Composite

To prepare for discussing cost basis with your clients, you can preview our revised 1099 Composite and find answers to common questions about the form.

Sample 1099 Composite - reorganized and updated to consolidate all tax information in one report, including Form 1099-B and the Year-End Summary.

Form 1099 FAQs - answers to many common questions you and your clients may have regarding the revised Form 1099 Composite.

Featured Resources

Take a look at some of our most popular documents for a better overview.

 

Cost Basis
Procedure Guide

gallery thumbnail DOWNLOAD >

Overview of Reporting Requirements

ENLARGE >

Cost Basis
Methods

gallery thumbnail ENLARGE >