1099-B Reporting – Beginning January 1, 2011 the IRS finalized a new 1099 regulation in recording and reporting the cost basis on certain securities.
Transfer agents and brokers are now required to report the costs of your investments you sold during the year to the IRS. This basis amount will be used by the IRS to review and audit your reported gains or losses on the sale of the reported investments.
New 1099-K – You may receive form 1099-K if you use credit card processing services or other similar transactions. This form is being sent to the IRS to make sure small businesses are not under reporting their revenues.
If you receive these forms it is important to make sure the amounts reported are correct.