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Market Maker Tax Reporting

Please note: IRESE does not provide tax advice. The following provides an overview of IRESE's tax reporting methodology for the benefit of Market Makers. Each taxpayer's situation is unique; please consult your tax advisor for more information.

Do I have to pay taxes on the money I make at IRESE?

Market Makers make money from trading activities at IRESE, and thus profit that results from such activities is taxable income. You are required by law to report these amounts on your tax return.

How is IRESE characterized for tax reporting purposes?

For purposes of income reporting, IRESE reports as an intermediary, known as a "nominee recipient" under IRC sec. 6049. Nominee recipients are responsible for reporting via forms 1099 proceeds which are ultimately disbursed to recipients. This is the same method of reporting used by stock brokerages.

Does IRESE report activity on a cash or accrual basis?

IRESE reports interest income on a cash basis, not on an accrual basis. This is required by the Internal Revenue Service.

What forms will IRESE provide for tax preparation purposes?

Market Makers may receive a 1099-MISC as part of IRESE's Consolidated Form 1099, delivered after the end of each calendar year. The 1099-MISC will include all Market Maker commissions (both origination commissions and payment commissions) which were paid during the calendar year.

When and where will I receive my tax forms?

If you are subject to 1099 tax reporting, your tax forms will be available on the "Home > My IRESE > Statements" page by January 31 of the year following the calendar year in question. For example, your 2008 tax forms will be available by January 31, 2009. Take me there

Will I need to file special tax forms for my IRESE activity?

Along with your Form 1040 for an individual or Form 1120 for an entity, you may need to file additional tax forms. Please consult your tax advisor for more information.

What if I do not file my taxes on a calendar year basis?

You should consult your tax advisor to determine the methodology behind adjusting your 1099 to reflect a non-calendar tax reporting. IRESE is required by the IRS to report on a calendar year basis.

Will I have to pay state taxes on my IRESE earnings?

This depends on which state income taxes you are subject to. Please consult your tax advisor for more information on this matter.

What if I have a question on any of the amounts shown on my tax forms or statements?

Please contact customer support if you have a question on any of the values which are reported on the IRESE-generated tax forms or statements.

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