Tax Information and Reporting

Year-end Reports

Your Annual Statement and other reports are available to view and print by logging in to Account Management and clicking Reports > Activity or Reports > Tax > Tax Forms.

Year-end reports are:

  • Annual Statement available February 1
  • Dividend Reports available February 15
  • Consolidated 1099 available February 15
  • WHFIT Statement available March 15
  • Form 2439 -- as required -
    90 days after the year-end of the reporting entity
  • Worksheet for Form 8949 available March 1
  • Canadian NR-4 available March 31

For Retirement Accounts:

  • Form 1099-R available January 31.
  • Form 5498 available May 31.

Annual Statement

The Annual Statement shows unadjusted realized and unrealized gains and losses, trade detail for account gain and loss for stocks, options, bonds, single stock futures, futures and futures options on a First In, First Out (FIFO) matching basis or the specific method of tax recognition you selected, corporate action adjustments, detail of dividends received, fees, detail of interest received, margin interest paid, payments in lieu paid and received and stock loan fees paid and received.

Worksheet for IRS Form 8949

IRS Form 8949 provides detailed support for Schedule D, Capital Gains and Losses. The Form 8949 worksheet shows trade details for all securities (stocks, options, single stock futures and bonds). Taxpayers report transactions on Form 8949 under one of six categories:

  • Part I-box A: Short-term transactions reported on Form 1099-B with basis reported to the IRS
  • Part I-box B: Short-term transactions reported on Form 1099-B but basis not reported to the IRS
  • Part I-box C: Short-term transaction for which you cannot check box A or B
  • Part II-box A: Long-term transactions reported on Form 1099-B with basis reported to the IRS
  • Part II-box B: Long-term transactions reported on Form 1099-B but basis not reported to the IRS
  • Part II-box C: Long-term transaction for which you cannot check box A or B

The IB 8949 worksheets report transactions in this format. All attempts have been made to tie the information on these worksheets to your Form 1099-Bs; however discrepancies may exist. All proceeds are reported net of commissions.

Transactions are paired (sells matched with buys) according to the tax basis declaration method selected in Account Management at time of sale, or using the IB Tax Optimizer lot selection designated at the time of the trade. FIFO is the default methodology.

The worksheet for Form 8949 provides details for both covered and noncovered securities. The details may include information not reported on Form 1099-B and adjustments and explanations where the information required to be reported on Form 1099-B differs from actual tax reporting. Explanations are provided using a letter code. For example:

  • Noncovered Securities: Cost or other basis, and wash sale losses disallowed for noncovered securities.
  • Incorrect Basis or Proceeds for Covered Securities
    • Form 1099-B reports cost basis adjusted for wash sale losses disallowed only when the loss was disallowed on the sale of a covered securities. The Form 8949 worksheet will provide a basis adjustment where the basis of a covered security is adjusted for a wash sale disallowed on a noncovered security. For example a customer: (1) buys 100 shares of XYZ on June 1, 2010 (2) sells the 100 shares of XYZ on February 1, 2011 for a loss, and (3) then repurchases 100 shares of XYZ on February 15, 2011. The sale on February 1, 2011 was a sale of noncovered securities so the wash sale will not be reported and the basis of the shares purchased on February 15, 2011 will not be adjusted when those shares are sold. This adjustment will be included on the Form 8949 worksheet when the shares purchased on February 15, 2011 are sold.
  • Incorrect Holding Period for Covered Securities: Form 1099-B reports the holding period adjusted to the holding period of a covered security sold with a wash sale loss disallowed. The Form 8949 worksheet will provide an adjustment to the holding period of a noncovered security sold with a wash sale loss disallowed.

At this time, trade details for FOREX are not available.

Please refer to IRS Publication 550 and the Instructions to Schedule D (and Form 8949) for more information.

The worksheet for Form 8949 should be available on the Tax Forms page in Account Management/Report Management or Account Management/Reports by March 1 for the immediately preceding year.

Available Online:

Your Consolidated Form 1099 is available to view and print by accessing IB’s website, selecting Account Management from the Login menu and clicking Reports > Tax > Tax Forms. Forms 1099-R and 5498, relating to IRA accounts, will be mailed to you directly.

Using TurboTax® with IB tax information

Log into Account Management and choose Tax Forms (Report Management or Reports). Select TurboTax TXF Format from the drop down menu and click View Report. Note that there is a limit of 3,000 transactions using this format.

Also note that the TXF import is only available on the TurboTax desktop product.

Note: Currently, TurboTax only supports covered securities wash sale adjustments and not other adjustments. Accounts with non-supported adjustments will be unable to download the Form 8949 Worksheet in TXF format.

Dividend Report

The Dividend Report shows account detail for all dividends and payments in lieu of dividends as well as tax withholding on these amounts. Additionally, a determination is made as to the holding period, thus all qualified dividends reported are identified as meeting the IRS requirement for the reduced tax rate making year-end tax reporting easier. Dividend reports are provided to all customers. Dividends are reported in the base currency of the account.

Gain/Loss Worksheet for 1256 Contracts

The Gain/Loss Worksheet for 1256 Contracts provides detail on mark-to-market profit and loss for sales of equity options, futures (excluding single stock futures) and future options in your account.

Futures contracts may be eligible for special gain or loss recognition treatment under Internal Revenue Code Section 1256. Generally, these gains or losses are allocated 60% to long-term capital gains and 40% to short-term regardless of the holding period. Special rules also apply to foreign currency contracts subject to these US tax provisions.

A contract that qualifies for section 1256 treatment is:

  • any regulated futures contract,
  • any foreign currency contract,
  • any non-equity option,
  • any dealer equity option or
  • any dealer securities futures contract

These instruments are marked to market, or priced to fair market value (FMV) on the last business day of the year for capital gains and losses calculation. Capital gains from trading Section 1256 contracts are reported on the consolidated 1099, specifically on the Form 1099-B for noncovered securities, discussed above.

The rules surrounding transactions for special gain and loss recognition treatment under section 1256 are complex. For more information, please refer to IRS Publication 550, Investment Income and Expenses, and the Instructions to IRS Form 6781. We also strongly recommend that you consult your tax advisor for this area of law.

IRS Circular 230 Notice: These statements are provided for information purposes only, are not intended to constitute tax advice which may be relied upon to avoid penalties under any federal, state, local or other tax statutes or regulations, and do not resolve any tax issues in your favor.