Forms 1099 are a series of U.S. tax information returns which report income earned as interest, dividends, proceeds from securities and commodities sale transactions, and other reportable payments posted to your account during a calendar year.  These reports, which are supplied to the IRS, provide information, which should be used in preparing your tax return.  For example, dividends and interest, are reported on IRS Form 1040, "U.S. Individual Income Tax Return", Schedule B.  Sales transactions are to be reported on IRS Form 1040, "U.S. Individual Income Tax Return", Schedule D.

Information on reporting gains and losses, including determining the cost basis, can be obtained by reading IRS Publications 544, "Sales and Other Dispositions of Assets", and 551, "Basis of Assets."  We recommend you consult your tax professional with specific questions.

All of the IRS forms and publications referenced above are available online at www.IRS.gov/formspubs

In compliance with Treasury Department Circular 230, unless stated to the contrary, any information contained in this FAQ was not intended or written to be used and cannot be used for the purpose of avoiding tax penalties that may be imposed on any taxpayer.