An information return is a document that businesses, organizations, and entities must submit to the IRS to report certain types of payments made during the year. While it does not compute the actual tax liability of a taxpayer or accompany the payment of taxes, it provides key details that are relevant for tax calculations. Common examples include Forms 1099, W-2, and others.
Net proceeds refer to the amount received from the sale or disposition of property, from a loan, or the sale or issuance of securities after the deduction of all costs incurred in the transaction.
