What are covered and non-covered shares?
- Covered shares are shares purchased on or after January 1, 2012. Tax Form 1099-B will provide cost basis information for covered shares to both the shareholder and the IRS.
- Non-covered shares are shares purchased by a shareholder on or before December 31, 2011. Non-covered shares will continue to be reported as they have in the past – only the gross proceeds will be reported to the IRS.
|Purchase date:||On or after 01/01/2012||On or before 12/31/2011|
|Form 1099-B reporting — shareholder||Cost basis information
will be provided
|If available, cost basis
information will be provided.
|Form 1099-B reporting — IRS||Cost basis information
will be provided.
|No cost basis information will be provided.
(Only the gross redemption amount will be
reflected on Form 1099-B).