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| scope :with_required_tax_info_for, -> (tax_year:) do | ||
| dividends_subquery = Dividend.select("company_investor_id") | ||
| .for_tax_year(tax_year) | ||
| .not_return_of_capital |
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Return of capital dividends are reported on 1099-B, not 1099-DIV. Without this filter, an investor who only received Return of Capital dividends could incorrectly trigger a 1099-DIV
| .not_return_of_capital | ||
| .group("company_investor_id") | ||
| .having("SUM(total_amount_in_cents) >= ?", MIN_DIVIDENDS_AMOUNT_FOR_TAX_FORMS) | ||
| .having("SUM(dividends.total_amount_in_cents) >= ?", MIN_DIVIDENDS_AMOUNT_FOR_TAX_FORMS) |
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Adding the dividends. table qualifier because the .not_return_of_capital scope joins dividend_rounds, and the unqualified total_amount_in_cents column is ambiguous between the two tables
| def mark_deleted! | ||
| docs = documents.tax_document.unsigned | ||
| docs = docs.where.not(document_type: [:form_1099div, :form_1042s]) if dividends.paid.any? | ||
| docs = docs.where.not(document_type: :form_1099b) if dividends.paid.return_of_capital.exists? |
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When a user re-submits their tax info (W-9), we delete their unsigned tax forms and regenerate them. But if they already have paid Return of Capital dividends, we must preserve the 1099-B, same logic as the existing 1099-DIV/1042-S preservation above
| end | ||
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| # Box 5: Noncovered security (private company shares are noncovered) | ||
| result[noncovered_field(copy, page)] = "1" |
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Private company shares are always noncovered securities per IRS rules, meaning the broker is not required to report cost basis to the IRS
| def long_term? | ||
| earliest_acquired = investor.share_holdings.minimum(:originally_acquired_at) | ||
| latest_sold = roc_dividends_for_tax_year.filter_map(&:paid_at).max | ||
| return true unless earliest_acquired && latest_sold |
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If we don't have share holding acquisition dates, we default to long-term
| @_dividend_amounts_for_tax_year ||= investor.dividends | ||
| .for_tax_year(tax_year) | ||
| .pluck("SUM(total_amount_in_cents), SUM(withheld_tax_cents), SUM(qualified_amount_cents)") | ||
| .not_return_of_capital |
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Excluding Return of Capital dividends here prevents double-reporting
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| def type_of_return = "B ".ljust(2) # Proceeds from broker and barter exchange transactions | ||
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| def amount_codes = "24".ljust(18) # Amount code 2 = Gross proceeds, Amount code 4 = Federal income tax withheld |
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Per IRS FIRE format spec: Amount Code 2 = Gross proceeds, Amount Code 4 = Federal income tax withheld. These are the only two payment amount fields used for 1099-B broker transactions
| tax_year:, | ||
| ) | ||
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| if user_compliance_info.requires_w9? |
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1099-B is only filed for US tax residents (W-9 filers)
| end | ||
| end | ||
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| def collect_roc_tax_form_data(tax_year, user_compliance_info_ids, company_ids, user_compliance_info_company_ids) |
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Return of Capital tax forms can't use the shared collect_tax_form_data_for method because Return of Capital eligibility is based on having Return of Capital dividends (via CompanyInvestor.with_return_of_capital_dividends_for), not on meeting a minimum dividend threshold like 1099-DIV/1099-NEC.
| We will submit form 1099-NEC to the IRS on {formatDate(new Date(currentYear, 0, 31))}, form 1042-S on{" "} | ||
| {formatDate(new Date(currentYear, 2, 15))}, and form 1099-DIV on {formatDate(filingDueDateFor1099DIV)}. | ||
| {formatDate(new Date(currentYear, 2, 15))}, and forms 1099-DIV and 1099-B on{" "} | ||
| {formatDate(filingDueDateFor1099DIV)}. |
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1099-B shares the same IRS filing deadline as 1099-DIV (March 31)
3 participants
Issue: #1614
Ref https://chat.google.com/room/AAQAWojMDVI/DOxHDk3v5ao/VQHyvh5xEQw?cls=10
Description
Add full 1099-B tax form generation support for Return of Capital dividend transactions
After
All data exist
1099-B-sample-full-data.pdf
If number of shares, date accquired, and invesment amount unknown or not exist on database
AI Disclosure
Claude Opus 4.6 for code generation. All code self reviewed