Form 1099-B

What is Tax Form 1099-B?

Tax Form 1099-B is a document used to report proceeds from broker and barter exchange transactions. It is typically issued by brokerage firms or barter exchanges to taxpayers who have sold stocks, bonds, commodities, or other securities during the tax year. This form helps the IRS track capital gains and losses, ensuring that taxpayers accurately report their investment income when filing taxes.
If you traded or sold investments through a brokerage account, you will likely receive a 1099-B detailing the sale price, cost basis, and other relevant transaction information.

Who Needs to File Tax Form 1099-B?

Brokers and barter exchanges are required to file Form 1099-B if they facilitate the sale or exchange of securities, commodities, or other financial instruments. You must file this form if:

• You are a brokerage firm that executes trades for clients.
• You operate a barter exchange, where goods or services are traded instead of cash.
• You process transactions involving stocks, bonds, mutual funds, derivatives, or similar securities.
• You sell or exchange cryptocurrency (some platforms also issue Form 1099-B for crypto transactions).

This form ensures that investors properly report their capital gains or losses to the IRS. If you’re unsure whether you need to file Form 1099-B, consult a tax professional.

When to File Tax Form 1099-B in 2025?

Here’s a simple guide to the deadlines for filing Form 1099-B in 2025:

• January 31, 2025: Provide a copy of Form 1099-B to the taxpayer (the person who sold the securities or participated in barter exchanges).
• February 28, 2025: File the form with the IRS if you are submitting it by mail.
• March 31, 2025: File the form with the IRS if you are submitting it electronically.
• As soon as possible if corrections are needed: If you discover errors, submit a corrected form promptly to avoid penalties.

Meeting these deadlines ensures compliance with IRS rules and helps taxpayers file accurate tax returns.

What Are the Penalties for Filing Tax Form 1099-B Late?

Failing to file Form 1099-B on time in 2025 may result in penalties. The IRS imposes fines based on how late you file:

• $60 per form: If you file up to 30 days late (by March 31, 2025).
• $120 per form: If you file more than 30 days late but before August 1, 2025.
• $310 per form: If you file after August 1, 2025, or fail to file at all.
• Higher penalties for intentional disregard: If you intentionally fail to file, the penalty is $630 or more per form, with no maximum limit.

To avoid these penalties, make sure to file Form 1099-B on time and submit corrections promptly if necessary.

How to File Tax Form 1099-B Online?

Filing Tax Form 1099-B online is a quick and efficient process. Here’s a step-by-step guide:

1. Choose an IRS-authorized e-file provider:
   • Visit the IRS website to find approved e-file services or use trusted tax software like TurboTax, TaxAct, or others.
2. Create an account or log in:
   • Register with your chosen e-file provider and set up your business profile, including your Employer Identification Number (EIN) or Taxpayer Identification Number (TIN).
3. Enter payment details:
   Fill in required information such as:
   • Brokerage firm or barter exchange details
   • Taxpayer’s name, address, and TIN
   • Description of securities sold or exchanged
   • Sale date and proceeds
4. Verify the information:
   • Double-check all details to avoid errors, especially sale amounts and taxpayer information.
5. Submit the form electronically:
   • Once verified, submit the form through the IRS e-file system. You will receive a confirmation when the IRS accepts it.
6. Send a copy to the recipient:
   • Provide a copy of the form to the taxpayer by January 31, 2025.

Filing online is faster and reduces errors compared to mailing paper forms. Always keep a copy for your records!

Tips for Filing Tax Form 1099-B

To ensure you file Form 1099-B correctly, follow these tips:

1. Determine if you need to file:
   • Brokers and barter exchanges must file if they facilitate the sale of stocks, bonds, or other securities.
2. Collect accurate information early:
   • Ensure you have correct records of each sale, including cost basis, sale price, and trade dates.
3. Meet the deadlines:
   • Send copies to taxpayers by January 31, 2025, and file with the IRS by February 28, 2025 (mail) or March 31, 2025 (e-file).
4. Double-check for errors:
   • Review all details carefully to avoid IRS audits or tax filing mistakes.
5. Use e-filing for efficiency:
   • Electronic filing reduces errors and provides instant confirmation from the IRS.
6. Keep records:
   • Retain copies of all filed 1099-B forms and transaction records for at least 3 years.
7. Fix mistakes promptly:
   • If you notice an error, submit a Corrected Form 1099-B as soon as possible.
8. Consult a tax professional if needed:
   • If you have complex transactions or need help understanding capital gains rules, seek advice from a tax expert.

Following these tips will help ensure Form 1099-B is filed smoothly and accurately.

1099-B Form FAQ