Reporting Requirements for Corporate Stock Redemption

Financial Institutions

January 01, 2012

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The rules regarding 1099 information reporting evolve a little bit each year. In regard to capital transactions, it can be difficult to know if Form 1099-DIV (Dividends and Distributions) or Form 1099-B (Proceeds from Broker and Barter Exchange Transactions) should be filed when stock is redeemed. There is not always a hard and fast answer to this question. This article will discuss stock redemption reporting requirements, the definition of “broker” for purposes of filing Form 1099-B, and the new cost basis reporting rules for Form 1099-B that became effective January 1, 2011.

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Length: 2 pages (PDF 85 kB)

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