Form 1099-B Instructions & Tax Reporting Pointers

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 15, 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:

• Stocks
• Mutual funds
• Bonds
• Commodities
• 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).