Understanding my US tax forms

Backup withholding is a US withholding tax that is applied by Computershare on any dividends, or sales proceeds to US participants who have not certified their Taxpayer Identification Number (TIN) through completing a Form W-9. Tax withheld due to backup withholding can be credited against your tax liability on your U.S. income tax return.

"Covered" shares are those for which the plan administrators, such as Computershare, are required by the IRS to report the cost basis to the individual and the IRS on Form 1099-B for any sales of covered shares.

Any equity plan shares acquired for cash on or after January 1, 2012, will be considered covered.

"Non-covered", or "Uncovered", means that cost basis record keeping is not required of plan administrators for such shares under the existing law. However, the US participant is still responsible for calculating the cost basis for their individual tax returns.

Non-covered shares include plan shares acquired before January 1, 2012 and shares not acquired for cash. For example, shares acquired as a result of a restricted stock unit vesting will be considered non-covered, as they were not acquired for cash.

A wash sale occurs when you sell or trade shares or securities at a loss and within 30 days before or after the sale you:

1. Buy substantially identical shares or securities,
2. Acquire substantially identical shares or securities in a fully taxable trade,
3. Acquire a contract or option to buy substantially identical shares or securities, or
4. Acquire substantially identical stock for your individual retirement account (IRA) or Roth IRA

You cannot deduct losses arising on a sale in the event of a wash sale (see Form 8949 FAQ below).

A Form 1099-DIV "Dividends and Distributions" is a yearly tax statement provided by Computershare to US plan participants detailing dividends and other distributions paid to them during the tax year ended December 31 2023.

We are required to provide a Form 1099-DIV to both you and the IRS to comply with our reporting obligations.

The Form 1099-DIV will report the following information:

• Name of recipient
• Address
• Taxpayer identification number (TIN) of recipient
• Ordinary dividends
• Total capital gain distributions
• Qualified dividends
• Non-dividend distributions
• Federal income tax withheld (i.e. backup withholding)
• Foreign tax paid (where relevant)

You'll get a 1099-DIV each year you receive a dividend distribution. However, if the amount received is less than $10 for the year, no 1099-DIV will be issued but you are still required to report that income to the IRS.

​If you're a US person and you've sold shares in the tax year ended December 31 2023, this is the form we'll provide to you. 

We are required to provide a Form 1099-B to both you and the IRS to comply with our reporting obligations.

The Form 1099-B will show the following information:

• Name of recipient
• Address
• Taxpayer identification number (TIN) of the recipient​
• Details of the shares sold on plan participants' instructions or on participants' behalf, including sales of equity plan shares to cover tax
• CUSIP or other applicable identifying number
• The cost basis for covered shares
• Whether any gain or loss is long-term, short-term or ordinary
• The gross proceeds of the sale
• Federal income tax withheld (i.e. backup withholding)
• The acquisition and sale date and other information required by the form in the manner required by the form

You will receive a Form 1099-B if you are:

• A US person (citizen or resident alien) or if you have US indicia (e.g. address) and have not provided Computershare with a W-8BEN; and
• You sold shares or received reportable payments during the tax year and the amount was greater than $20; or
• You had any U.S. federal tax withheld on a sale or other reportable payment.

This box may be blank if Box 5 is checked or if the securities sold were acquired on multiple dates

In line with the IRS instructions, we will always report the proceeds in US currency. Where necessary we will convert any non US currency amount. If you elected to receive the proceeds in USD we reflect the actual FX rate applied, in all other cases we apply an average mid-market FX rate as at the settlement date of the sale.

​This amount relates to any backup withholding Computershare has applied to the sale proceeds. See below for FAQs on "backup withholding". No other taxes will be reported within box 4.

The amount shown in box 1g is the loss resulting from wash sales occurring in respect of your equity plan shares.

If your loss is disallowed because of the wash sale rules, you can add the disallowed loss to the cost of the new plan shares. This adjustment postpones the loss deduction until the sale of the new plan shares or securities. Your holding period for the new plan shares or securities includes the holding period of the stock or securities sold. Wash sale adjustments should be reflected in column f and g on Form 8949.

​The backup withholding rate during 2023 is 24%. 

​No, we are not required to increase the cost basis for any compensation income reported on Form W-2. However, the IRS Form 8949 (Sales and Other ​Dispositions of Capital Assets) gives you the opportunity to adjust the cost basis of the shares sold by the value of the reward reflected as ordinary income on Form W-2.

You should consult with your tax advisor to confirm how the information within the Form 1099-B should be used to comple​te your Form 1040 (Individual Income Tax Return) including Form 8949.

If you sell all of your shares, the cost basis ordering method (e.g., FIFO, LIFO, etc.) becomes irrelevant. Cost basis ordering methods are only used when there is a partial sale, transfer or certificate issuance by the holder. When a holder sells or transfers their entire covered shares position, the basis for the entire position is provided.

If you are a US participant and sold shares in the tax year ended December 31 2023, you may be required to report the information relating to the sale on Form 8949, "Sales and Other Dispositions of Capital Assets".

The Form 8949 allows both you and the IRS to reconcile amounts reported on Form 1099-B with the amounts you report on your income tax return. This may include adjustments to the cost basis shown on Form 1099-B to include any amounts reported to you as income on Form W-2.

Information recorded on Form 8949 should be transferred to Form 1040, Schedule D, "Capital Gains and Losses".

When completing your Form 8949, you may be required to include the below information on the form. Please be sure to follow these guidelines carefully. More information about the Form 8949 ​​is at www.irs.gov/form8949.

No. Form 8949 is used to calculate the taxable gain. Form 8949 reflects any W-2 income as an adjustment to the 1099-B cost basis in order to avoid any double taxation. See below guidance on how to complete Form 8949.

Fill in your name and Social Security number at the top of the form 8949.

In Part 1, put an "X" in Box A, as reported on your Form 1099-B in the "Applicable checkbox on Form 8949" box, "Short-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS."

Fill in the grid (see example of grid at bottom of this page) in Part I (Short-term gain or loss) or Part II (Long-term gain or loss) of the Form 8949 using information shown on your Form 1099-B. Items (a)-(e) should be entered exactly as reported to you on Form 1099-B:

1. the number and description of shares sold
2. the date the shares were acquired
3. the date the shares were sold
4. the net sale proceeds ((shares sold * price)-fees paid)
5. the cost basis reported on Form 1099-B
6. the code to enter when cost basis is adjusted
7. adjustment to cost basis - enter as negative number. This is the income reported to you on Form W-2 or 1099-NEC / 1099-MISC by the company, and should equal ((shares sold * fair market value per share (FMV) on exercise date) - (cost basis reported in (e) above)). FMV is the value per share used to calculate the compensation income the company reported to you on Form W-2 or 1099-NEC / 1099-MISC. In addition, the adjustment includes variance between payment and reporting amounts due strictly to currency conversion rate differences with no monetary benefit.
8. gain or loss (column (d) - column (e) + column (g)