SECTION 5. Information for Filers of

Form 1099–B

Pursuant to revised § 1.6045–3T(a), a broker that holds shares on behalf of a customer in a corporation that the broker knows or has reason to know has engaged in a transaction under § 1.6043–4T(c) or (d) must file an information return with respect to the customer, unless the customer is an exempt recipient, and furnish a copy of the information return to the customer. Revised § 1.6045–3T(c) provides that the broker must use Form 1099–B, along with transmittal Form 1096, for this information reporting requirement. With respect to transactions in 2003, the broker may elect to use Form 1099–CAP in lieu of Form 1099–B. In completing Form 1099–B, brokers should aggregate all proceeds (cash, stock,

2004-4 I.R.B. 335 January 26, 2004

IRS determines are affected by a terroristic or military action.