Understanding Your Fidelity 2012 Informational Tax Statement
Reporting to the IRS
Please note that we generally do not send the information in the Informational Tax Reporting Statement to the IRS because we only provide Informational Tax Reporting Statements to customers who our records indicate are exempt recipients for 1099 reporting purposes and who, therefore do not receive a Form 1099 for most transactions in their accounts. We are required to report any information for your account that we record on a 1099 Tax Reporting Statement to you and to the IRS. For S-corporations, this includes proceeds and other Form 1099-B information, which, prior to 2012, was not reportable. Whereas in past years certain information appeared on either the Informational Tax Statement or on the 1099 Tax Statement, but not on both, this is no longer the case. As a result, we also include your information, reported on the 1099 Tax Statement, on the Informational Tax Statement. This is a change from past years. We have made this change so that you may have more of your tax information in one statement. We are required to report all Form 1099 information to you and to the IRS.
Substitute payments in lieu of dividends
Informational tax statement highlights
eDelivery of tax statements
Proceeds from broker and barter exchange transactions: further enhancements
To support the implementation of the IRS cost basis reporting requirements, Fidelity has made enhancements to the format of Form 1099-B for the 2012 tax year. These changes are designed to make it easier for non-exempt customers to complete Form 8949, Sales and Dispositions of Other Assets, and/or Form 1040, Schedule D, Capital Gains and Losses. In addition, the IRS cost basis reporting requirements for 2012 require additional reporting for proceeds and exchanges of "covered"mutal funds (and certain other securities in dividend reinvestment plans)." For more information, see the detailed description of the Proceeds from broker and barter exchange transactions section, later in this guide.Form 1099-B is part of the non-exempt Fidelity Tax Reporting Statement and is also part of the information that we are required to report to the IRS. Your Informational Tax Reporting Statement reflects similar changes, because it presents tax information in a format similar to a statement for a non-exempt account. Please note—with the exception of any tax information, also reported on a Form 1099 Tax Statement, we do not report any information from Informational Tax Statements to the IRS.
Tax-exempt interest dividend reporting is now in the Dividends and Distributions portion of your statement
De minimis reporting
Royalty trust information
Frequently asked questions
The tax information contained herein is general in nature, is provided for informational purposes only, and should not be construed as legal or tax advice. Fidelity does not provide legal or tax advice. Fidelity cannot guarantee that such information is accurate, complete, or timely. Laws of a particular state or laws which may be applicable to a particular situation may have an impact on the applicability, accuracy, or completeness of such information. Federal and state laws and regulations are complex and are subject to change. Changes in such laws and regulations may have a material impact on pre- and/or after-tax investment results. Fidelity makes no warranties with regard to such information or results obtained by its use. Fidelity disclaims any liability arising out of your use of, or any tax position taken in reliance on, such information. Always consult an attorney or tax professional regarding your specific legal or tax situation.