Form 1099-B is the hub of capital-gains reporting. If you are filing for TY2025, make sure the basis is right, so the investor’s Schedule D matches cleanly. Get it wrong especially the basis and you invite CP2000 letters and penalties. Let’s walk through a simple guide so you can e-file clean 1099-Bs with confidence.
Along the way, we’ll naturally cover what folks search for most: how to file 1099-B, how a payer files 1099-B, 1099-B basis reporting rules, 1099-B furnishing deadline 2026, barter exchange 1099-B payer guide, consolidated 1099 statement, IRS Form 1099-B electronic filing, and 1099-B wash sale reporting.
Why Form 1099-B matters to the payer?
Form 1099-B is the IRS’s main data match for capital gains. If basis reporting is off, the IRS may assume the investor had more gain than they did, and a CP2000 notice follows. Clean, timely filing protects your brand with investors, keeps your books and records in order, and keeps consolidated statements (DIV/INT/OID/1099-B) tidy.
Penalty exposure: For returns due in 2025: up to $60 per return if corrected within 30 days, $130 if corrected by August 1, $330 after that, and $680 for intentional disregard—each with annual caps for large filers (no cap for intentional disregard). For 2026-due returns, the late tiers step up to $60 / $130 / $340 / $680. Missed backup withholding can leave you liable for 24% tax plus interest.
Backup withholding stays 24% if the payee fails the TIN rules or triggers B-notice requirements. Start and report it on Form 945.
Who must file Form 1099-B and when?
Who files: Domestic and foreign brokers, barter exchanges, reorganizing corporations when you “effect” sales or exchanges of covered securities, and anyone in a payer role on brokered dispositions. (See the official 1099-B instructions for the full scope).
No dollar threshold: Every sale must be reported there’s no de minimis cutoff under §6045.
Key 2025→2026 deadlines (2025 tax year):
Furnish recipient statements: Feb 17, 2026 (1099-B, 1099-DA, 1099-S; applies to consolidated statements, too).
Paper file with IRS: Mar 2, 2026 (if you qualify for paper).
Electronic file with IRS: Mar 31, 2026.
And remember: if you file 10+ total information returns across types, you must e-file (aggregation rule).
Extensions: Form 8809 gives an automatic 30-day extension for the IRS copy. A different process (fax) applies to recipient-copy extensions.
Quick pre-filing checklist
- Get a current W-9 (or W-8BEN for non-U.S.), run TIN Matching, and keep the confirmation numbers.
- Capture trade-date proceeds, acquisition dates, adjusted basis, and wash-sale disallowed losses.
- Split into covered (e.g., stocks acquired ≥2011; options ≥2014) vs non-covered.
- Flag special cases: short sales, collectibles, market discount, §1256 contracts.
- Validate state fields for any CF/SF state recipients and states that want direct feeds (see “State reporting” below).
How to file Form 1099-B?
1) Pick your e-file path.
- IRIS (free IRS portal) is live and expanding.
- FIRE still accepts P1220 files, but the IRS has targeted retiring FIRE after TY 2026 / FS 2027, pushing everyone to IRIS. If you’ve used FIRE, get your IRIS TCC squared away now.
2) Prepare clean data.
Normalize symbols/CUSIPs, standardize account numbers, and pad numeric fields per schema (Pub. 1220 for FIRE or the IRIS specs).
3) Fill in the important boxes right.
- Boxes 1a–1d: Description, date acquired, date sold, gross proceeds.
- Box 1e: Cost or other basis (mandatory for covered securities).
- Boxes 1f and 1g: Accrued market discount / wash-sale loss disallowed.
- Box 4: 24% backup withholding.
- Box 5: Leave unchecked for non-covered securities (basis not reported to IRS).
- Box 12: Use when basis is reported to IRS (covered). Report any wash-sale loss disallowed in Box 1g (there’s no wash-sale “code” box on the 2025 form).
- Box 13: Use this box for barter transactions; Box 3 is not for bartering.
See the current IRS instructions/form for precise field behavior.
4) Build investor statements that are easy to consume.
Consolidated 1099s are fine just make sure 1099-B info is easy to find, barcodes/legends are present, and your e-delivery has affirmative consent and provides a PDF equivalent to Copy B.
5) Upload and clear errors.
Submit a test file, fix “T” (TIN) or “R” (return) errors and keep the acceptance manifest/confirmation. (IRIS and FIRE provide acknowledgments you should archive with transmission logs).
6) Keep an audit trail.
Hold XML/P1220 source files, transmission proofs, and all correction receipts for at least four years (best practice aligning with IRS recordkeeping norms in the 1099 instructions).
Form 1099-B Penalties and how to reduce them?
Here’s the simplified penalty ladder per return (remember there are annual caps for large filers and no cap for intentional disregard):
| Days late | Per-return penalty (2025-due) |
| ≤ 30 days | $60 |
| 31 days – August 1 | $130 |
| > August 1 / not filed | $330 |
| Intentional disregard | $680 |
For 2026-due returns, the tiers are $60 / $130 / $340 / $680. Fixing mistakes lowers the amount, and reasonable cause relief may apply if you acted responsibly before/after the failure. (If you receive Notice 972CG, respond within the stated window).
Note: Some blogs talk about “automatic full abatement” just by filing a CORRECTED return within 30 days of discovery. That’s not how the Code and regs read. The official reduction windows are based on days after the due date, and separate reasonable-cause and de minimis error safe-harbor rules may apply in limited cases. Always anchor your approach to the IRS’s penalty page and the General Instructions.
State reporting & consolidated statements (what you need to know)
CF/SF program forwards many 1099 types to participating states, but several states still require direct filing or extra forms—especially when state tax is withheld.
California (FTB): Generally relies on CF/SF when amounts match, but you still have separate CA rules and resources to follow.
Oregon: Uses iWire; you must file W-2/1099s directly via the state portal.
Pennsylvania: Requires separate W-2/1099 submissions.
Wisconsin: Participates in CF/SF, but if WI tax is withheld, you must submit directly by January 31 (plus WT-7).
For consolidated statements, put 1099-B first, then DIV/INT/OID, and include a bold legend like “This statement contains IRS Form 1099-B information.” (This aligns with the consolidated-statement approach in the General Instructions.)
Real-life scenarios
- Investor sells 250 ABC shares (acquired 6/2019).
Report proceeds and basis; check Box 5 (basis reported to IRS); mark long-term. That’s a smooth match on Schedule D. - Crypto-for-stock swap on a barter platform.
Today, crypto sales are reported on Form 1099-DA under the final broker rules, with transitional relief for basis in 2025 (gross proceeds required; basis mandatory for covered assets starting 2026). If the platform truly operates as a barter exchange for non-digital assets, 1099-B applies; otherwise, follow 1099-DA instructions for digital-asset dispositions. - Same-day wash sale of XYZ options.
Reduce the basis by the disallowed loss and include wash-sale details by reporting the disallowed loss in Box 1g (there is no wash-sale code field on the 2025 form). - Cash-plus-stock merger (Form 8937 event).
Allocate basis per the issuer’s notice and use the applicable reorg coding; expect gains split between cash and shares. (Issuer 8937 drives the math.) - Missing TIN; backup withholding.
Withhold 24% on gross proceeds, report in Box 4, and send the B-Notice on time. Liability shifts toward the payee when you’ve done your part. - Short sale closes next year.
Follow the short-sale rules: indicate short-term as applicable and use “various” for acquisition date if appropriate (see 1099-B instructions).
FAQs
1. Do you combine multiple trades into one line?
Generally, no. Show each transaction separately your consolidated statement can include roll-ups as long as you can supply details on request. (Consolidated statements are permitted; just preserve detail.)
2. Is there a proceeds threshold below which you can skip filing?
None. Every sale is reported under §6045.
3. When do you leave Box 5 (basis reported to IRS) unchecked?
For non-covered securities (e.g., most equity acquired before 2011, mutual funds before 2012, options before 2014, many debt instruments before 2016).
4. How do you fix the wrong acquisition date?
File a CORRECTED return, update 1b/1c, tick the “Corrected” box, and furnish a corrected recipient statement.
5. Should a crypto platform file 1099-B or 1099-DA?
Under final regulations, digital-asset brokers generally use 1099-DA beginning with 2025 transactions (recipient copies in early 2026). There’s transitional relief for basis reporting.
6. What if you can’t determine the basis?
Report basis as 0.00 for non-covered where unknown; don’t mark Box 5; include a clear description so the payee can adjust on Schedule D. (See 1099-B instructions and Pub. 550 conventions).
7. Can you e-deliver statements without paper?
Yes, with affirmative consent and a PDF equivalent to Copy B (and access instructions), per the General Instructions.
Keep your 1099-B process airtightimport trade data, validate TINs, apply basis rules, and e-file on time. Then you won’t worry about CP2000s, penalty tiers, or backup-withholding surprises.