Proceeds from Broker and Barter Exchange Transactions, a broker or barter exchange must file this form for each person:
- For whom, they sold stocks, commodities, regulated futures contracts, foreign currency contracts, forward contracts, debt instruments, options, securities futures contracts, etc., for cash,
- Who received cash, stock, or other property from a corporation that the broker knows or has reason to know has had its stock acquired in an acquisition of control or had a substantial change in capital structure reportable on Form 8806, or
- Who exchanged property or services through a barter exchange.
The form is used to report proceeds of sales of securities transactions in taxable accounts to taxpayers and the IRS at year end. This form will show the cost basis information for sales of securities during the tax year, but only information for covered securities is generally reported to the IRS. Cost basis for non-covered securities may be provided on the form for informational purposes, but will not be reported to the IRS. For non-covered securities, you are responsible for determining cost basis when filing your tax return.