Third Party Reporting Information Center - Information Documents
The IRS uses third-party information reporting on forms in the 1099 series to increase voluntary compliance and improve collections. Beginning in 2011, new legislation requires reporting of income in two areas: merchant payment card reporting (credit, debit and certain electronic transactions) and Securities Basis Reporting.
The links below take you to forms, instructions and background information related to tax reporting on merchant payment cards and cost basis reporting on securities sales. These regulations, notices and FAQs provide details on the implementation of Section 6050W of the Housing Assistance Tax Act of 2008.
Information Reporting on Merchant Payment Card
- New Notices Related to Form 1099-K
- Form 1099-K and Instructions
- Final Regulations Text (8/13/2010)
- Final Regulations Explanation
- 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: Nonapplication of Section 6050W to certain insurance arrangements
- Notice 2011-88: postpones the effective date for potential backup withholding obligations
- Notice 2011-89: provides transitional relief from penalties for reporting incorrect information on Form 1099-K
- FAQs on New Payment Card Reporting Requirements
Cost Basis Reporting on Securities Sales
- Form 1099-B
- Form 1099-B Instructions
- Draft Form 1040 Schedule D
- Form 8949
- Press Release(10/12/2010): Final Regulations
- TD 9504: Basis Reporting by Securities Brokers and Basis Determination for Stock (final regulations, 10/18/2010)
- 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
- FAQs on Cost Basis Reporting
Information Reporting by Government Entities of Certain Government Payments (3% Withholding)
Get Regular Updates:
- e-news for Small Businessesprovides a free e-mail with tax info for small businesses and self-employed.
- Quick Alerts help your tax pros stay current on events that affect e-file transmitters, providers and software developers.
- Other e-news subscriptions offer a variety of tax information delivered to your inbox.
Note: The following initiatives have been repealed.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
