Instructions for Form 1099-B

Proceeds From Broker and Barter Exchange Transactions

Future Developments

For the latest information about developments related to Form 1099-B and its instructions, such as legislation enacted after they were published, go to IRS.gov/Form1099B.

Reminders

• Who must file.
• When and where to file.
• Electronic reporting.
• Corrected and void returns.
• Statements to recipients.
• Taxpayer identification numbers (TINs).
• Backup withholding.
• Penalties.
• The definitions of terms applicable for chapter 4.

General Instructions

1099GeneralInstructions or go to IRS.gov/Form1099B.

Online fillable copies. To ease statement furnishing requirements, Copies B, C, 1, and 2 are fillable online in a PDF format available at IRS.gov/Form1099B. You can complete these copies online for furnishing statements to recipients and for retaining in your own files.

Filing Requirements

A broker or barter exchange must file Form 1099-B for each person:

• For whom the broker has sold (including short sales) or exchanged property or services through a barter exchange.

Qualified Opportunity Funds

A Qualified Opportunity Fund (QOF) is an investment vehicle organized as a corporation or a partnership for the purpose of investing in qualified opportunity zone property. See section 1400Z-2(d).

Reporting Dispositions

Report all dispositions of interests in the QOF regardless of the identity of the person who disposed of it. Report each disposition on a separate Form 1099-B:

• Box 1a: For interests in the QOF, enter the appropriate descriptions. For example, for stock, enter the number of shares or units; for partnerships, enter the percentage of investment.
• Box 1b: Enter the acquisition date of any interest in the QOF, if known.
• Box 1c: Enter the date of disposition of any interest in the QOF.
• Box 1d: Enter the gross cash proceeds from the disposition of any interest in the QOF, if known.
• Box 3: Check the “QOF” box for reporting the disposition of an interest in the QOF.

Brokers

If you are a broker or barter exchange, complete Form 1099-B as usual for all dispositions of interests in QOFs. Complete box 1e to report cost or other basis for QOF investments.

Reporting

How many transactions to report on each form:

• Report each transaction on a separate Form 1099-B, except for regulated futures, foreign currency, or Section 1256 option contracts which may be reported on an aggregate basis.

Sales of Securities

Sales of each type of securities must be reported on a separate Form 1099-B:

• Covered securities with short-term gain.
• Covered securities with long-term gain or loss.
• Noncovered securities if the option is checked when reporting their sale.

Example of Reporting

Your customer Bella bought shares of stock in ABC Corporation in April 2001 and 2021. If Bella sells all the stock in a single transaction, report sales of covered securities on two separate Forms 1099-B. Report the noncovered securities on a third Form 1099-B or alongside the Form 1099-B reporting the sale of the covered securities.

Short Sales of Securities

Do not report a short sale entered into after 2010 until the year a customer delivers a security to satisfy the short sale obligation. Report the short sale on a single Form 1099-B unless:

• You are reporting both short-term and long-term gain or loss from a short sale closed by delivery of covered securities.

Backup Withholding

If backup withholding was taken, file a 2022 Form 1099-B and report tax withheld in box 4. If a short sale obligation is satisfied with a security transferred into a customer's account, follow Regulations section 1.6045-1(c)(3)(xi)(C).

Widely Held Fixed Investment Trusts (WHFITs)

Trustees and middlemen must report various payment proceeds on Form 1099-B. A tax information statement must be provided to TIHs.

Requirements for Tax Information Statement

A written tax information statement is required to be provided to TIHs detailing elements such as non-pro rata partial principal payments, trust sales proceeds, etc.

Identifying a Corporation

For sales of covered securities that were acquired after 2011, certain identifiers are used to determine whether a customer is a corporation.

Barter Exchanges

A barter exchange must report each transaction on separate Form 1099-B except for transactions involving exempt foreign persons or exchanges involving property valued at less than $1.00.

Statements to Recipients

If you are required to file Form 1099-B, you must provide a statement to the recipient. Pursuant to Regulations section 301.6109-4, all filers may truncate a recipient’s TIN on payee statements; however, truncation is not allowed on documents filed with the IRS.

This is a brief overview and reference for filling out Form 1099-B, including requirements for brokers, QOFs, and general instructions regarding sales and exchanges of securities.