Form 1099-B Explained: How to Report Broker & Barter Exchange Transactions

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IRS Form 1099-B is part of the 1099 Series, used to proceeds from broker and barter exchange transactions. If you’ve sold stocks, bonds, or other securities through a broker or participated in a barter exchange, you may need to file Form 1099-B.

This guide provides everything you need about Form 1099-B, including who must file, key reporting details, deadlines, and why e-filing with TaxBandits is the best option.

Let’s dive into the details.

What is Form 1099-B?

A broker or barter exchange typically files Form 1099-B to report the proceeds from transactions involving brokerage or barter exchanges. This form details the gains or losses from the broker’s transactions, including sales of stocks, bonds, commodities, mutual funds, securities, futures contracts, and other investments.

Form 1099-B provides important investment details, such as a property description, the dates it was acquired and sold, and any associated gains or losses. It also indicates any federal tax withheld by the broker. As a broker or barter exchange, you will provide your taxpayer with a completed Form 1099-B.

Who Needs to File Form 1099-B?

Form 1099-B must be filed by brokers or barter exchanges to report proceeds from broker or barter exchange transactions. This includes:

• Brokers: To whom you sold stocks, commodities, regulated futures contracts, foreign currency contracts, forward contracts, debt instruments, options, or securities futures contracts for cash must file Form 1099-B.
• Barter Exchange: The organizations that facilitate the exchanges of services or property through the barter exchange must file Form 1099-B with the IRS.

The broker or barter exchange must provide Form 1099-B to all recipients by February 15 following the tax year. If a recipient does not receive their copy, they should contact the issuer for a replacement.

What Information is Required to File Form 1099-B?

Form 1099-B includes several key pieces of information essential for tax reporting purposes. Here is the following information required to file Form 1099-B, such as:

• Payer Information: Name, TIN, and Address
• Recipient Information: Name, TIN, Address, and Account Number
• Transaction Information that includes
  • Date of acquisition and sale or exchange
  • Proceeds, Cost or Other Basis
  • Accrued market discount
  • Short-term or long-term gain or loss
  • Wash sale loss disallowed
  • Proceeds from collectibles or QOF(Qualified Opportunity Funds)
  • Realized or Unrealized Profits and Losses

• Federal Income Tax Withheld 
• Bartering Information
• State filing information includes state abbreviations, payers’ state identification numbers, and state income tax withheld.

Deadline for Filing Form 1099-B for the 2024 Tax Year

To stay compliant with IRS regulations, you must be aware of the important deadlines for filing Form 1099-B for the 2024 tax year:

• Electronic Filing Deadline: March 31, 2025
  If you are filing Form 1099-B electronically with the IRS, the deadline to submit your return is March 31, 2025.

• Recipient Copy Deadline: February 18, 2025
  A copy of Form 1099-B must be provided to the recipient by February 18, 2025. This ensures they have accurate tax information when filing their return.
• Paper Filing Deadline: February 28, 2025
  If filing Form 1099-B by paper, it must be mailed by February 28, 2025.

Meeting these deadlines is crucial to avoid penalties and ensure compliance with IRS requirements.

Can You Get an Extension for Form 1099-B?

Yes, if you cannot meet the filing deadline for Form 1099-B, you can request an extension by submitting Form 8809 to the IRS on or before the original due date. You’ll receive an automatic 30-day extension to file Form 1099-B if your request is approved.

What are the Penalties for not Filing Form 1099-B?

If you do not file Form 1099-B within the required deadline, the IRS will impose significant penalties ranging from $60 to $660 per form, depending on the business size and the delay period.

To learn more about the 1099-B penalties, click here.

Simplify Your 1099-B Filings With TaxBandits!

TaxBandits simplifies the e-filing of Form 1099-B with the IRS and furnishes recipient copies. As an IRS- IRS-authorized e-file service provider, we provide all the outstanding features that make us stand out from the industry. 

We provide secure and cloud-based software for the e-filing of 1099-B forms for the 2024 tax year. You have various options for importing data either manually or in bulk using the standard CSV template.

TaxBandits has multiple options for distributing recipient copies of 1099-B forms, ensuring timely and secure delivery. This includes options like online access for your recipient to view, download, and access their form copies anytime from the online portal. This portal can also be customized to reflect your brand identity. We also offer postal mailing services, ensuring the mailing copies reach your recipients on time.

With TaxBandits, you can e-file Form 1099-B with the IRS and the required state agencies. If the IRS rejects your Form 1099, you can correct the errors and retransmit the form for free, offering a seamless process.

Make tax reporting simple and efficient—E-file Form 1099-B with TaxBandits today!