§ 6045. Returns of brokers
(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
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—
(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.
(d)
Statements required in case of certain substitute payments
If any broker—
(2)
receives (on behalf of the customer) a payment in lieu of—
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:
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):
(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—
(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.
(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.
(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—
(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—
(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
(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.