Tax Dictionary – Information Statement (Information Return)
Any person engaged in a trade or business, including a corporation, partnership, individual, estate, and trust, who makes reportable transactions during the calendar year must file information returns to report those transactions to the IRS. Persons required to file information returns to the IRS must also furnish statements to the other party to the transaction, such as recipients of income.
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An information statement is a document that employers, banks, financial institutions, and other payers send to the IRS to report the income they have paid you. Examples of information statements commonly reported to the IRS include:
- Wages on Form W-2
- Nonemployee compensation on Form 1099-MISC
- Interest income on Form 1099-INT
- Retirement distributions on Form 1099-R
- Sale of stocks on Form 1099-B
The IRS matches the information reported on these documents to the amounts you reported on your tax return. If there is a mismatch, the IRS will send you a notice.
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