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United States Code (Last Updated: May 24, 2014) |
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Title 26. INTERNAL REVENUE CODE |
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SubTitle F. Procedure and Administration |
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Chapter 61. INFORMATION AND RETURNS |
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SubChapter A. Returns and Records |
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Part III. INFORMATION RETURNS |
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SubPart B. Information Concerning Transactions With Other Persons |
§ 6045. Returns of brokers
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(a) General rule Every person doing business as a broker shall, when required by the Secretary, make a return, in accordance with such regulations as the Secretary may prescribe, showing the name and address of each customer, with such details regarding gross proceeds and such other information as the Secretary may by forms or regulations require with respect to such business.
(b) Statements to be furnished to customers Every person required to make a return under subsection (a) shall furnish to each customer whose name is required to be set forth in such return a written statement showing— (1) the name, address, and phone number of the information contact of the person required to make such return, and (2) the information required to be shown on such return with respect to such customer. The written statement required under the preceding sentence shall be furnished to the customer on or before February 15 of the year following the calendar year for which the return under subsection (a) was required to be made. In the case of a consolidated reporting statement (as defined in regulations) with respect to any customer, any statement which would otherwise be required to be furnished on or before January 31 of a calendar year with respect to any item reportable to the taxpayer shall instead be required to be furnished on or before February 15 of such calendar year if furnished with such consolidated reporting statement. (c) Definitions For purposes of this section— (1) Broker The term “broker” includes— (A) a dealer, (B) a barter exchange, and (C) any other person who (for a consideration) regularly acts as a middleman with respect to property or services. A person shall not be treated as a broker with respect to activities consisting of managing a farm on behalf of another person. (2) Customer The term “customer” means any person for whom the broker has transacted any business.
(3) Barter exchange The term “barter exchange” means any organization of members providing property or services who jointly contract to trade or barter such property or services.
(4) Person The term “person” includes any governmental unit and any agency or instrumentality thereof.
(d) Statements required in case of certain substitute payments If any broker— (1) transfers securities of a customer for use in a short sale or similar transaction, and (2) receives (on behalf of the customer) a payment in lieu of— (A) a dividend, (B) tax-exempt interest, or (C) such other items as the Secretary may prescribe by regulations, during the period such short sale or similar transaction is open, the broker shall furnish such customer a written statement (in the manner as the Secretary shall prescribe by regulations) identifying such payment as being in lieu of the dividend, tax-exempt interest, or such other item. The written statement required under the preceding sentence shall be furnished on or before February 15 of the year following the calendar year in which the payment was made. The Secretary may prescribe regulations which require the broker to make a return which includes the information contained in such written statement. (e) Return required in the case of real estate transactions (1) In general In the case of a real estate transaction, the real estate reporting person shall file a return under subsection (a) and a statement under subsection (b) with respect to such transaction.
(2) Real estate reporting person For purposes of this subsection, the term “real estate reporting person” means any of the following persons involved in a real estate transaction in the following order: (A) the person (including any attorney or title company) responsible for closing the transaction, (B) the mortgage lender, (C) the seller’s broker, (D) the buyer’s broker, or (E) such other person designated in regulations prescribed by the Secretary. Any person treated as a real estate reporting person under the preceding sentence shall be treated as a broker for purposes of subsection (c)(1). (3) Prohibition of separate charge for filing return It shall be unlawful for any real estate reporting person to separately charge any customer for complying with any requirement of paragraph (1). Nothing in this paragraph shall be construed to prohibit the real estate reporting person from taking into account its cost of complying with such requirement in establishing its charge (other than a separate charge for complying with such requirement) to any customer for performing services in the case of a real estate transaction.
(4) Additional information required In the case of a real estate transaction involving a residence, the real estate reporting person shall include the following information on the return under subsection (a) and on the statement under subsection (b): (A) The portion of any real property tax which is treated as a tax imposed on the purchaser by reason of section 164(d)(1)(B). (B) Whether or not the financing (if any) of the seller was federally-subsidized indebtedness (as defined in section 143(m)(3)). (5) Exception for sales or exchanges of certain principal residences (A) In general Paragraph (1) shall not apply to any sale or exchange of a residence for $250,000 or less if the person referred to in paragraph (2) receives written assurance in a form acceptable to the Secretary from the seller that— (i) such residence is the principal residence (within the meaning of section 121) of the seller, (ii) if the Secretary requires the inclusion on the return under subsection (a) of information as to whether there is federally subsidized mortgage financing assistance with respect to the mortgage on residences, that there is no such assistance with respect to the mortgage on such residence, and (iii) the full amount of the gain on such sale or exchange is excludable from gross income under section 121. If such assurance includes an assurance that the seller is married, the preceding sentence shall be applied by substituting “$500,000” for “$250,000”. The Secretary may by regulation increase the dollar amounts under this subparagraph if the Secretary determines that such an increase will not materially reduce revenues to the Treasury. (B) Seller For purposes of this paragraph, the term “seller” includes the person relinquishing the residence in an exchange.
(f) Return required in the case of payments to attorneys (1) In general Any person engaged in a trade or business and making a payment (in the course of such trade or business) to which this subsection applies shall file a return under subsection (a) and a statement under subsection (b) with respect to such payment.
(2) Application of subsection (A) In general This subsection shall apply to any payment to an attorney in connection with legal services (whether or not such services are performed for the payor).
(B) Exception This subsection shall not apply to the portion of any payment which is required to be reported under section 6041(a) (or would be so required but for the dollar limitation contained therein) or section 6051.
(g) Additional information required in the case of securities transactions, etc. (1) In general If a broker is otherwise required to make a return under subsection (a) with respect to the gross proceeds of the sale of a covered security, the broker shall include in such return the information described in paragraph (2).
(2) Additional information required (A) In general The information required under paragraph (1) to be shown on a return with respect to a covered security of a customer shall include the customer’s adjusted basis in such security and whether any gain or loss with respect to such security is long-term or short-term (within the meaning of section 1222).
(B) Determination of adjusted basis For purposes of subparagraph (A)— (i) In general The customer’s adjusted basis shall be determined— (I) in the case of any security (other than any stock for which an average basis method is permissible under section 1012), in accordance with the first-in first-out method unless the customer notifies the broker by means of making an adequate identification of the stock sold or transferred, and (II) in the case of any stock for which an average basis method is permissible under section 1012, in accordance with the broker’s default method unless the customer notifies the broker that he elects another acceptable method under section 1012 with respect to the account in which such stock is held. (ii) Exception for wash sales Except as otherwise provided by the Secretary, the customer’s adjusted basis shall be determined without regard to section 1091 (relating to loss from wash sales of stock or securities) unless the transactions occur in the same account with respect to identical securities.
(3) Covered security For purposes of this subsection— (A) In general The term “covered security” means any specified security acquired on or after the applicable date if such security— (i) was acquired through a transaction in the account in which such security is held, or (ii) was transferred to such account from an account in which such security was a covered security, but only if the broker received a statement under section 6045A with respect to the transfer. (B) Specified security The term “specified security” means— (i) any share of stock in a corporation, (ii) any note, bond, debenture, or other evidence of indebtedness, (iii) any commodity, or contract or derivative with respect to such commodity, if the Secretary determines that adjusted basis reporting is appropriate for purposes of this subsection, and (iv) any other financial instrument with respect to which the Secretary determines that adjusted basis reporting is appropriate for purposes of this subsection. (C) Applicable date The term “applicable date” means— (i) January 1, 2011 , in the case of any specified security which is stock in a corporation (other than any stock described in clause (ii)),(ii) January 1, 2012 , in the case of any stock for which an average basis method is permissible under section 1012, and(iii) January 1, 2013 , or such later date determined by the Secretary in the case of any other specified security.(4) Treatment of S corporations In the case of the sale of a covered security acquired by an S corporation (other than a financial institution) after
December 31, 2011 , such S corporation shall be treated in the same manner as a partnership for purposes of this section.(5) Special rules for short sales In the case of a short sale, reporting under this section shall be made for the year in which such sale is closed.
(h) Application to options on securities (1) Exercise of option For purposes of this section, if a covered security is acquired or disposed of pursuant to the exercise of an option that was granted or acquired in the same account as the covered security, the amount received with respect to the grant or paid with respect to the acquisition of such option shall be treated as an adjustment to gross proceeds or as an adjustment to basis, as the case may be.
(2) Lapse or closing transaction In the case of the lapse (or closing transaction (as defined in section 1234(b)(2)(A))) of an option on a specified security or the exercise of a cash-settled option on a specified security, reporting under subsections (a) and (g) with respect to such option shall be made for the calendar year which includes the date of such lapse, closing transaction, or exercise.
(3) Prospective application Paragraphs (1) and (2) shall not apply to any option which is granted or acquired before
January 1, 2013 .(4) Definitions For purposes of this subsection, the terms “covered security” and “specified security” shall have the meanings given such terms in subsection (g)(3).
Amendments
2008—Subsec. (b). Pub. L. 110–343, § 403(a)(3)(A), (C), in concluding provisions, substituted “February 15” for “January 31” and inserted at end “In the case of a consolidated reporting statement (as defined in regulations) with respect to any customer, any statement which would otherwise be required to be furnished on or before January 31 of a calendar year with respect to any item reportable to the taxpayer shall instead be required to be furnished on or before February 15 of such calendar year if furnished with such consolidated reporting statement.”
Subsec. (d). Pub. L. 110–343, § 403(a)(3)(B), in concluding provisions, struck out “at such time and” before “in the manner” and inserted “The written statement required under the preceding sentence shall be furnished on or before February 15 of the year following the calendar year in which the payment was made.” before “The Secretary may prescribe”.
Subsecs. (g), (h). Pub. L. 110–343, § 403(a)(1), (2), added subsecs. (g) and (h).
2005—Subsec. (e)(5)(A). Pub. L. 109–135 adjusted the margin of the third sentence to include it in concluding provisions with the second sentence.
1997—Subsec. (e)(5). Pub. L. 105–34, § 312(c), added par. (5).
Subsec. (f). Pub. L. 105–34, § 1021(a), added subsec. (f).
1996—Subsec. (b)(1). Pub. L. 104–168 substituted “name, address, and phone number of the information contact” for “name and address”.
Subsec. (e)(3). Pub. L. 104–188 inserted at end “Nothing in this paragraph shall be construed to prohibit the real estate reporting person from taking into account its cost of complying with such requirement in establishing its charge (other than a separate charge for complying with such requirement) to any customer for performing services in the case of a real estate transaction.”
1992—Subsec. (e)(4). Pub. L. 102–486 substituted heading for one which read: “Whether seller’s financing was federally-subsidized” and amended text generally. Prior to amendment, text read as follows: “In the case of a real estate transaction involving a residence, the real estate reporting person shall specify on the return under subsection (a) and the statement under subsection (b) whether or not the financing (if any) of the seller was federally-subsidized indebtedness (as defined in section 143(m)(3)).”
1990—Subsec. (e)(4). Pub. L. 101–508 substituted “reporting person” for “broker”.
1989—Subsec. (e)(3), (4). Pub. L. 101–239 redesignated par. (3), relating to whether seller’s financing was federally-subsidized indebtedness, as (4).
1988—Subsec. (c)(1). Pub. L. 100–647, § 1015(e)(1)(A), inserted at end “A person shall not be treated as a broker with respect to activities consisting of managing a farm on behalf of another person.”
Subsec. (e)(1). Pub. L. 100–647, § 1015(e)(3)(A), substituted “real estate reporting person” for “real estate broker”.
Subsec. (e)(2). Pub. L. 100–647, § 1015(e)(3), substituted “estate reporting person” for “estate broker” in par. (2) heading and two places in text.
Subsec. (e)(3). Pub. L. 100–647, § 4005(g)(3), added par. (3) relating to whether seller’s financing was federally-subsidized indebtedness.
Pub. L. 100–647, § 1015(e)(2)(A), added par. (3) relating to prohibition of separate charge for filing return.
1986—Subsec. (b). Pub. L. 99–514, § 1501(c)(4), in amending subsec. (c) generally, substituted references to persons required to make a return for former references to persons making a return.
Subsec. (e). Pub. L. 99–514, § 1521(a), added subsec. (e).
1984—Subsec. (c)(4). Pub. L. 98–369, § 714(e)(1), added par. (4).
Subsec. (d). Pub. L. 98–369, § 150(a), added subsec. (d).
1982—Pub. L. 97–248 designated existing provisions as subsec. (a), substituted “the name and address of each customer, with such details regarding gross proceeds” for “the names of customers for whom such person has transacted any business, with such details regarding the profits and losses” after “may prescribe, showing” and “such business” for “each customer as will enable the Secretary to determine the amount of such profits and losses” after “with respect to”, and added subsecs. (b) and (c).
1976—Pub. L. 94–455 struck out “or his delegate” after “Secretary” wherever appearing.
Effective Date Of Amendment
Amendment by Pub. L. 110–343 effective
Amendment by section 312(c) of Pub. L. 105–34 applicable to sales and exchanges after
Pub. L. 105–34, title X, § 1021(c),
Pub. L. 104–188, title XVII, § 1704(o)(2),
Amendment by Pub. L. 104–168 applicable to statements required to be furnished after
Pub. L. 102–486, title XIX, § 1939(b),
Amendment by Pub. L. 101–239 effective, except as otherwise provided, as if included in the provision of the Technical and Miscellaneous Revenue Act of 1988, Pub. L. 100–647, to which such amendment relates, see section 7817 of Pub. L. 101–239, set out as a note under section 1 of this title.
Pub. L. 100–647, title I, § 1015(e)(1)(B),
Pub. L. 100–647, title I, § 1015(e)(2)(B),
Amendment by section 1015(e)(3) of Pub. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 1019(a) of Pub. L. 100–647, set out as a note under section 1 of this title.
Amendment by section 4005(g)(3) of Pub. L. 100–647 applicable to financing provided, and mortgage credit certificates issued, after
Amendment by section 1501(c)(4) of Pub. L. 99–514 applicable to returns the due date for which (determined without regard to extensions) is after
Pub. L. 99–514, title XV, § 1521(c),
Pub. L. 98–369, div. A, title I, § 150(b),
Amendment by section 714(e)(1) of Pub. L. 98–369 effective as if included in the provision of the Tax Equity and Fiscal Responsibility Act of 1982, Pub. L. 97–248, to which such amendment relates, see section 715 of Pub. L. 98–369, set out as a note under section 31 of this title.
Pub. L. 97–248, title III, § 311(c)(1),
Miscellaneous
Pub. L. 98–369, div. A, title VII, § 714(e)(2),