That's not the same as reporting purchases to the IRS.
Potentially I could go to my broker, tell him I want to withdraw 100 shares of T or X.
This gets me stock certificates issued, which does not generate any 1099 forms.
I could then take my stock certificates, Sign the back, endorse some of them over to you,
and donate some others to a charity, then you go and deposit the shares into your account.
The company then has no idea:
1. (For tax purposes) which of my shares have sold to you. Many of the shares I would own would
likely have a different tax basis. I might own shares of the same company 2 or 3 brokerage accounts, instead of just 1, and I may elect the FIFO or LIFO method of tax basis accounting, which means telling one of my brokers to sell shares in one account is actually selling shares with the cost basis that I purchased at a different broker (Since all your different accounts with the same company's stock are the Same Issue, for tax purposes).
2. None of the brokers, nor their issuer has idea about the consideration you paid me in exchange for these shares.
With this transaction, it would be up to you to report the sales proceeds you paid me. You would have no idea, the cost basis either.
3. The issuer of the stock won't know the actual date we agreed to the sale, again, it will be up to the buyer to report that on presentation of the stock certificates to the company's issuer to update the share ownership of the number of units transferred.