What is Form 1099-B and Who Needs to File?
Form 1099-B is an IRS informational return that brokers and barter exchanges use to report proceeds from transactions involving sale of stock, bonds, options, or futures.
According to Form 1099-B instructions, there is no minimum reporting threshold, the payer, whether they are an S-corp, C-corp, partnership, or individual investor, must issue a Form 1099-B for barter exchanges It also reports payouts from a company restructuring or merger, and when property or services changed hands through a barter exchange.
Form 1099-B Boxes Explained: Detailed Box Guide
What goes in each field, and common mistakes made while filling Form 1099-B boxes, are explained below:
| Box | What to Enter | Report |
| 1a | Description of property | Description of the asset that was sold or transferred |
| 1b | Date acquired (covered securities) | Date of acquisition of the asset |
| 1c | Date sold/disposed | Date the asset was sold |
| 1d | Gross proceeds | Gross proceeds from the sales transaction before commissions or fees |
| 1e | Cost or other basis | Cost basis (adjusted basis) of what was originally paid for the asset |
| 1f | Accrued market discount | Any accrued market discount on the asset sold |
| 1g | Wash-sale loss disallowed | Wash sales for certain short-term transactions |
| 2 | Gain/loss type | Checkbox to report a short-term gain, long-term gain, or an ordinary gain |
| 3 | Collectibles and QOF boxes | Proceeds from collectibles or Qualified Opportunity Fund (QOF) investments |
| 4 | Federal tax withheld | 24% backup withholding |
| 5 | Non-covered security checkbox | |
| 6 | Proceeds reporting method | Specify if the proceeds were reported as gross or net proceeds |
| 7 | Loss not allowed (e.g., straddle rules) | Loss is not allowed based on the proceeds |
| 8, 9, 10, 11 | Profit/loss on on contracts | Profit or loss realized in the tax year on all contracts (iopen & closed) |
| 12 | Basis reported to IRS checkbox | Show the cost/basis was reported to the IRS |
| 13 | Barter proceeds (FMV) | Amount of bartering proceeds from a barter exchange |
| 14-16 | State info (name, payer ID, tax withheld) | Name of the state, state identification number, and any state-level taxes withheld |
1099-B Due Date 2026, Filing Rules & Penalties
Given below are Form 1099-B due dates for 2026:
| Deadline | |
| Feb 18, 2026 (Original deadline: Feb 15)* | Provide consolidated 1099-B statements to recipients |
| Feb 28, 2026 | Paper filers Form 1099-B along with 1099-B |
| March 31, 2026 | E-file 1099-B |
*Feb 15 falls on a weekend and Feb 17 is a federal holiday.
Late-to-file Penalty for Form 1099-B
As per IRS Form 1099-B instructions, these are the current penalties for the form.:
- $60: Filed within 30 days after the due date
- $120: Filed after 30 days but within August 1
- $330: Filed after August 1 or no filing
- $660: Intentional disregard
You can get penalties waived if payers can show reasonable cause for delay, such as system outage logs, disaster declarations, or proof of recipient refusal.
Form 1099-B Guidelines
Here is a quick Form 1099-B instruction or best practices follow for a smooth filing:
- Confirm W-9 forms and TIN validations before filing.
- Match trade totals against clearing statements.
- Recheck the covered/non-covered flags and basis details.
- Review wash-sale reporting (1099-B) and market discount adjustments.
- Review types of gains/losses,QOF, collectibles, and basis reporting.
- Verify state payer IDs and any foreign addresses.
- Send recipient copies by 18 February 2026.
- Save the IRS acknowledgements and maintain an audit log.
How to File 1099-B Using 1099Online
Given below is a step-by-step guide to file the form as per IRS’ Form 1099-B instructions:
- Create a free account on 1099Online or log in to an existing account
- Add payer profile(s) (multiple EINs are supported).
- Import recipient data manually or by using the Bulk Import Excel template.
- Do a bulk TIN Match to instantly verify SSNs/EINs, and reduce the chance of backup withholding.
- Generate totals for Boxes 1d–1g totals automatically in 1099Online.
- Review the data in the form and e-file with the IRS or respective state agencies.
- Deliver recipient copies via email or USPS. Track status and corrections (if any) at no extra cost.
Common Errors in Broker 1099-B Reporting
Listed below are some frequent mistakes that can raise red flags:
- Missing covered security cost basis 1099-B information that doesn’t match the taxpayer’s returns often triggers CP2000 notices.
- Labeling crypto trades as “Various Digital assets” instead of following the new Form 1099-DA rules.
- Delays in sending recipient copies beyond 18 February 2026 can incur penalties depending on how late you file.
Real-Life Examples
Here are a few practical scenarios to get a better understanding of when and how to file 1099-B.
| Scenario | Result |
| Sold 100 Apple shares for $18,000 and the original cost (basis) is $11,000 | Report proceeds ($18,000) in Box 1d, basis ($11,000) in Box 1e (Box 1e), mark Box 2 if it was held for less than a year |
| Non-covered mutual-fund redemption is worth $5,500 | Report non covered sales on a separate 1099-B, check Box, leave Boxes 1b (date acquired) and 1e (basis) (as well as 1f, 1g, and 2) blank |
| Wash-sale within 30 days | Report the disallowed wash-sale loss amount in Box 1g |
| Barter exchange credits of $900 design work | Report FMV of the barter exchange in Box 13 |
| Crypto sale (Broker platform) | Report as per 1099-DA reporting rules |
FAQs
1. Does every trade need a separate 1099-B?
You need to issue separate 1099-B forms to cover all reportable categories, even if sold in a single transaction
2. Why are recipient copies due 17 Feb 2026 instead of 31 Jan?
The IRS sets the furnish-by date on Feb 17 for Form 1099-B for easier consolidation of transactions from various sources.
3. Does a payer need to report the basis for non-covered securities?
No, you do not need to report the basis for non-covered securities. Instead, you can leave Boxes 1b/1e/1f/1g/2 blank and check Box 5 if you report.
4. Are corporations exempt from receiving 1099-B?
No, all entities must receive 1099-Bs if the reporting thresholds are met.
5. Is e-filing required if nine 1099-Bs and two 1099-INTs are filed?
Yes, the IRS e-file mandate requires you to e-file if there are more than 10 combined information returns.
6. How are wash-sale losses reported?
Report the disallowed loss in Box 1g, the basis adjusted in Box 1e, and leave Box 1d the same.
7. What penalties apply for late filing after 31 Mar 2026?
If you file after March 31, 2026, you need to pay a penalty of up to $310 per form.
Bulk import and e-file them all at once with 1099Online
Filing 1099-B for hundreds of stock sales?