What You Need to Know About Form 1099-B
Proceeds from Broker and Barter Exchange Transactions
The 1099-B is used to report transactions, for each person:
- For whom the broker has sold
(including short sales) stocks,
commodities, regulated futures
contracts, foreign currency contracts
(pursuant to a forward contract or
regulated futures contract), forward
contracts, debt instruments, options,
securities futures contracts, etc., for cash;
- Who received cash, stock, or other
property from a corporation that the
broker knows or has reason to know
has had its stock acquired in an
acquisition of control or had a
substantial change in capital structure
reportable on Form 8806; or Who
exchanged property or services
through a barter exchange.
Applicable businesses: Brokers, obligors who regularly issue and retire their own debt obligations, corporations that regularly redeem their own stock, barter exchanges and other financial institutions.
When to file: 1099-B forms must be mailed to recipients by February 16, and e-filed with the IRS by March 31 each year.
The 1099-B should be filed for each person for whom the broker has sold:
- Mutual funds
- Regulated futures contracts
- Foreign currency contracts
- Forward contracts
- Debt instruments
The 1099-B should also be filed for a person who has received cash, stock or other property from a corporation that the broker knows (or has reason to know) has had its stock acquired or had a substantial change in capital structure (report on Form 8806).