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 your Informational Tax Reporting Statement or on your 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 Reporting 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 Forms 1099 information to you and to the IRS.
Mutual fund reporting
Informational Tax Reporting Statement highlights
Fidelity has redesigned your tax statements
For non-exempt accounts, beginning in tax year 2012, the Internal Revenue Service (IRS) expanded the cost basis reporting requirements for sales and exchanges of certain “covered” mutual fund shares on Form 1099-B, Proceeds from Broker and Barter Exchange Transactions. In addition, tax-exempt interest dividends and specified activity bond interest dividends, previously reported on Form 1099-INT must now be reported on Form 1099-DIV, Dividends and Distributions. We have reflected all of these changes in the newly redesigned Informational Tax Reporting Statement that we send to non-exempt Fidelity funds account holders. Key changes to the statement include the following:
eDelivery of tax statements
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.