Understanding Your Fidelity 2012 Informational Tax Statement

Our corporate and non-prototype Fidelity customers, who are exempt recipients for Internal Revenue Service (IRS) Form 1099 reporting purposes, have asked to see their year-end account information as it would appear in a Form 1099 consolidated tax statement. As a result, each year in February we send an Informational Tax Statement to Fidelity Funds Account customers who our records indicate are exempt recipients for 1099 reporting purposes. This guide provides detailed information to help you understand your Informational Tax Statement.

Understanding Your Informational Tax Statement

2007 Dividends and Distributions

The Informational Tax Reprting Statement is based on IRS information reporting requirements for individuals. You may be subject to different income tax reporting requirements. Depending upon your situation, this information and the information in your Informational Tax Statement may not be accurate or appropriate for tax preparation purposes. We suggest that you consult your tax advisor before using any of this information for tax preparation.

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.

If you are required to file a return, the IRS may impose a negligence penalty, or other sanction, if any income from an account for which you receive an Informational Tax Reporting Statement is taxable and the IRS determines that it has not been reported by you.

Mutual fund reporting

If you are required to file a federal tax return, the IRS generally requires you to report information for each mutual fund separately in the applicable section of your federal tax return rather than reporting an aggregate total of all your dividends, and/or sales of shares from all your mutual funds under the name "Fidelity Investments".

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:

  • Cost basis information is now presented in the Proceeds from Broker and Barter Exchange Transactions section. Last year that information appeared in the detail Realized Gain/Loss sections of the statement.
  • A landscape orientation to help you more easily read the entire statement
  • Elimination of the Interest Income Form 1099-INT and the supplemental Realized Gain/Loss sections from your tax statement

eDelivery of tax statements

Beginning with tax year 2012, customers may choose to stop receiving their tax statements by mail and instead receive an email notifying them when their tax statement is available for viewing online. Contact a Fidelity Representative or your investment professional for further information about eDelivery options.

Transferred accounts

If your account was transferred to Fidelity in 2012, your Informational Tax Statement only includes activity from the time your account was established here. You may wish to contact your former clearing firm for information about any activity prior to the transfer.

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.

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