Final answer:
Broker-Dealers must provide a consolidated Form 1099 to customers, which includes income details like interest and dividends and is used for filing tax returns. It is typically generated annually post-fiscal year-end.
Step-by-step explanation:
Broker-Dealers (BDs) are required by the IRS to provide their customers with a consolidated Form 1099 for tax records. This form includes various types of income such as interest, dividends, and proceeds from stock transactions.
The consolidated Form 1099 is typically generated annually after the end of the fiscal year, to report the customers' taxable events in the previous year. It is an essential document that helps individuals file their federal income tax returns accurately.