Section references are to the Internal Revenue Code unless otherwise noted.
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.
In addition to these specific instructions, you should also use the current General Instructions for Certain Information Returns. Those general instructions include information about the following topics.
Online fillable copies.
To ease statement furnishing requirements, Copies B, 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.
A broker or barter exchange must file Form 1099-B for each person:
A 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 of QOF investments.
Report all dispositions of interests in the QOF regardless of the identity of the person who disposed of it. For example, if the person is a corporation, you should still file a Form 1099-B. A disposition includes any disposition of the investment (whether or not the disposition is for consideration), including by gift or inheritance.
Report each disposition on a separate Form 1099-B, regardless of how many dispositions any one person has made in the calendar year. The reporting Exceptions under Brokers , and the reporting Exceptions under Barter Exchanges , later, do not apply to dispositions of interests in a QOF. If you are a QOF that is not a broker or barter exchange and do not know that a broker or barter exchange reported a disposition of an interest in the QOF, then complete the following on the form in the manner instructed for the respective items and boxes.
QOFs must furnish a statement to the person who disposed of the interest in the QOF investment. For additional information on furnishing statements, see part M in the current General Instructions for Certain Information Returns.
If you are a broker or barter exchange, including a QOF that is a broker or barter exchange, complete Form 1099-B as usual for all dispositions of interests in QOFs. Follow the specific instructions for brokers or barter exchanges (for example, the reporting of basis for a QOF investment that is a covered security). Complete all boxes as appropriate, depending on the nature of the interest disposed. For example, if the QOF investment is stock, you must complete box 1e to report cost or other basis. Also, you must check the QOF box in box 3 for all dispositions of QOF investments.
A broker is any person who, in the ordinary course of a trade or business, stands ready to effect sales to be made by others. A broker may include a U.S. or foreign person or a governmental unit and any subsidiary agency.
You are considered a broker if:
However, for a sale, redemption, or retirement at an office outside the United States, only a U.S. payer or U.S. intermediary is a broker. See Regulations sections 1.6045-1(g)(1) and 1.6049-5(c)(5).
You are not considered a broker if:
How many transactions to report on each form.
Report each transaction (other than regulated futures, foreign currency, or Section 1256 option contracts) on a separate Form 1099-B. Report transactions involving regulated futures, foreign currency, or Section 1256 option contracts on an aggregate basis. However, you may report these contracts on an aggregate basis on a separate Form 1099-B for each type of contract.
How many forms to file for each transaction.
Report sales of each of the following types of securities on a separate Form 1099-B, even if all three types were sold in a single transaction.
Closing transactions.
In the case of an option, a regulated futures contract, a securities futures contract, or a forward contract, a sale includes any closing transaction. A closing transaction is a lapse, an expiration, a settlement, an abandonment, or other termination of a position (which includes a right or an obligation under a forward contract, a regulated futures contract, a securities futures contract, or an option).
Example.
For an option that is a covered security, that also has a basis of zero in the option upon a closing transaction, enter -0- in box 1e.
Substitute statements.
Brokers that use substitute statements may be able to report customer transactions (stock sales (Form 1099-B), interest earned (Forms 1099-INT and 1099-OID), dividends (Form 1099-DIV), and foreign taxes paid (Forms 1099-DIV and 1099-INT)) for the year on a single substitute statement. For details, see Pub. 1179, General Rules and Specifications for Substitute Forms 1096, 1098, 1099, 5498, and Certain Other Information Returns, at IRS.gov/Pub1179, which provides the rules for substitute forms.
Additional information required for covered securities.
For each sale of a covered security for which you are required to file Form 1099-B, report the date of acquisition (box 1b); whether the gain or loss is short-term or long-term, and whether any portion of the gain or loss is ordinary (box 2); cost or other basis (box 1e); the amount of accrued market discount (box 1f); and the loss disallowed due to a wash sale (box 1g). When selling a noncovered security and reporting it on a separate Form 1099-B, you may check box 5 and leave boxes 1b, 1e, 1f, 1g, and 2 blank. If you check box 5, you may choose to report the information requested in boxes 1b, 1e, 1f, 1g, and 2 and will not be subject to penalties under section 6721 or 6722 for failure to report this information correctly.
Example.
Your customer Arlo bought shares of stock in ABC Corporation in April 2001, April 2023, and August 2023. The shares of stock bought in 2023 are covered securities. The shares of stock bought in April 2001 are noncovered securities. In June 2024, Arlo sells all of the stock in a single transaction. Even though the stock was sold in a single transaction, you must report the sale of the covered securities on two separate 2024 Forms 1099-B (one for the securities bought in April 2023 with long-term gain or loss and one for the securities bought in August 2023 with short-term gain or loss). You must report the sale of the noncovered securities on a third Form 1099-B or on the Form 1099-B reporting the sale of the covered securities bought in April 2023 (reporting long-term gain or loss). You may check box 5 if reporting the noncovered securities on a third Form 1099-B. If you check box 5, you may leave boxes 1b, 1e, 1f, 1g, and 2 blank or you may complete boxes 1b, 1e, 1f (if applicable), 1g (if applicable), and 2 and not be subject to penalties under section 6721 or 6722 for failing to report this information correctly.
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, unless there is backup withholding. See Backup withholding , later. Disregard sections 1259 (constructive sales) and 1233(h) (short sales of property that becomes worthless). Report the short sale on a single Form 1099-B unless:
Report on Form 1099-B the relevant information about the security sold to open the short sale, with the exceptions described in the following paragraphs.
In box 1a, report the quantity of the security delivered to close the short sale.
In box 1b, report the acquisition date of the security delivered to close the short sale.
In box 1c, report the date the security was delivered to close the short sale.
In box 1e, report the adjusted basis of the security delivered to close the short sale.
In box 2, report whether any gain or loss on the closing of the short sale is short-term or long-term based on the acquisition date of the security delivered to close the short sale. Apply section 1233(d), if applicable.
If the short sale is closed by delivery of a noncovered security, you may check box 5. In this case, you do not have to complete boxes 1b, 1e, 1f, 1g, and 2. However, if you choose to report the information in those boxes and check box 5, you will not be subject to the penalties under sections 6721 and 6722 for failure to report that information correctly.
If a short sale obligation is satisfied by delivery of a security transferred into a customer's account accompanied by a transfer statement indicating the security was borrowed, see Regulations section 1.6045-1(c)(3)(xi)(C).
In the case of a short sale, you can take backup withholding either:
If backup withholding was taken from the gross proceeds when a short sale was opened in 2024 but the short sale was not closed by the end of 2024, file a 2024 Form 1099-B. Report the tax withheld in box 4. In box 1a, enter a brief description of the transaction (for example, “$5,000 short sale of 100 shares of ABC stock not closed”). Leave the other numbered boxes blank. File a final Form 1099-B for the year the short sale is closed, as described above, but do not include the 2024 tax withheld on that Form 1099-B.
Widely held fixed investment trusts (WHFITs).
Trustees and middlemen must report the amount of non-pro rata partial principal payments (as defined in Regulations section 1.671-5(b)(13)), trust sales proceeds (as defined in Regulations section 1.671-5(b)(21)), redemption asset proceeds (as defined in Regulations section 1.671-5(b)(14)), redemption proceeds (as defined in Regulations section 1.671-5(b)(15)), the sales asset proceeds (as defined in Regulations section 1.671-5(b)(17)), and the sales proceeds (as defined in Regulations section 1.671-5(b)(18)) that are attributable to a trust interest holder (TIH) for the calendar year on Form 1099-B.
To determine the amount of each item of proceeds to be reported on Form 1099-B, see, generally, Regulations section 1.671-5. If the trustee provides WHFIT information using the safe harbor rules in Regulations section 1.671-5(f)(1) or (g)(1), the trustee or intermediary must determine the amounts reported on Forms 1099 under Regulations section 1.671-5(f)(2) or (g)(2), as appropriate.
Check box 5 and leave boxes 1b, 1e, 1f, 1g, and 2 blank if:
A tax information statement that includes the information provided to the IRS on Form 1099-B, as well as additional information identified in Regulations section 1.671-5(e), must be provided to TIHs. The written tax information statement furnished to the TIH for 2024 is due on or before March 15, 2025. The amount of an item of a trust expense that is attributable to a TIH must be included on the tax information statement provided to the TIH and is not required to be included in box 5 on the Form 1099-DIV. See Regulations section 1.671-5(e) for a complete list of the items of information that must be included in the statement to the TIH.
Acquisition of control or substantial change in capital structure.
File Form 1099-B for each customer who received cash, stock, or other property from a corporation that you know, or have reason to know based on readily available information, must recognize gain under section 367(a) from the transfer of property to a foreign corporation in an acquisition of control or substantial change in capital structure reportable on Form 8806. Readily available information includes information from a clearing organization, such as the Depository Trust Company (DTC), or from information published on the IRS website.
For more information, see Form 8806, available at IRS.gov/Form8806.
You are not required to file a second Form 1099-B for a customer who received only cash for stock acquired in an acquisition of control if you report the cash as proceeds from a sale on another Form 1099-B. You are also not required to file Form 1099-B for a customer who is an exempt recipient (under Regulations section 1.6045-1(c)(3)(i) or 1.6043-4(b)(5)). For a list of exempt recipients, see the current Instructions for Form 1099-CAP.
Enter in box 1d the aggregate amount of cash and the fair market value (FMV) of any stock and other property received in exchange for stock held in your custody. Also, check box 7.
In box 1a, show the corporation's name and the number of shares of the corporation's stock you held that were exchanged. Also enter the class or classes of stock (for example, preferred, common, etc.) that were exchanged, whether for cash or other property. Abbreviate the class to fit the entry. For example, enter “C” for common stock, “P” for preferred, or “O” for other. Also abbreviate any subclasses.
Leave the other numbered boxes and the CUSIP number box blank unless you are required to file a Form 1099-B to report proceeds you paid to the customer from the acquisition of control or substantial change in capital structure and you choose to file and furnish one Form 1099-B for amounts reported under both Regulations sections 1.6045-1 and 1.6045-3. If you choose to combine the reporting for both, do not combine other transactions the customer may have had during the year with the reporting of the acquisition of control or change in capital structure. Also, in box 1e, report the total basis of the customer's stock. Do not enter an amount in box 1e that is greater than the amount entered in box 1d.
Cash on delivery account.
For a sale of securities through a “cash on delivery” or similar account, only the broker that receives the gross proceeds from the sale against delivery of the securities sold is required to report the sale. However, if such broker's customer is a “second-party broker” that is an exempt recipient, only the second-party broker is required to report the sale.
Foreign currency.
If the purchase amount or sales proceeds are paid in foreign currency, you must report the amount of foreign currency in U.S. dollars. Generally, you must determine the reportable amount (other than amounts representing accrued interest or original issue discount) as of the date you receive, credit, or make the payment, whichever applies, at the spot rate or by following a reasonable spot rate convention, such as a month-end spot rate or a monthly average spot rate. When reporting the purchase or sale of a security traded on an established securities market, you must determine the U.S. dollar amounts to be reported (other than amounts representing accrued interest or original issue discount) as of the settlement date, at the spot rate or by following a reasonable spot rate convention. See Regulations section 1.6045-1(d)(8).
Generally, payments of foreign currency amounts representing accrued interest or original issue discount must be translated using the average rate for the interest accrual period, although certain customers may elect to translate such amounts using the spot rate on the last day of the interest accrual period. See Regulations sections 1.988-2(b)(2) and 1.6045-1(n)(4)(v).
Substitute payments.
Do not report substitute payments in lieu of dividends and tax-exempt interest on Form 1099-B. Instead, report these payments in box 8 of Form 1099-MISC, Miscellaneous Income. See section 6045(d) and the Instructions for Forms 1099-MISC and 1099-NEC.
Stock options granted in connection with the performance of services.
If an employee, former employee, or other service provider, in connection with the performance of services, obtains substantially vested shares of stock from the exercise of a stock option, and sells that stock through a broker on the same day, then the broker may not be required to report the sale on Form 1099-B. For details, see Rev. Proc. 2002-50, which is on page 173 of Internal Revenue Bulletin 2002-29 at IRS.gov/pub/irs-irbs/irb02-29.pdf.
Partnership sale.
Form 8308, Report of a Sale or Exchange of Certain Partnership Interests, does not have to be filed if, under section 6045, a return is required to be filed by a broker on Form 1099-B for the transfer of the partnership interest.
Exceptions.
Brokers are not required to file, but may file, Form 1099-B for the following.
For sales of covered securities (defined later) that were acquired after 2011, you cannot rely on Regulations section 1.6049-4(c)(1)(ii)(A) to tell whether a customer is a corporation. However, for sales of all securities, you can treat a customer as an exempt recipient if one of the following statements is true.
Agricultural commodities include grain, feed, livestock, meat, oil seed, timber, and fiber. A spot sale is a sale that results in almost immediate delivery of a commodity. A forward sale is a sale under a forward contract. However, sales and exchanges of timber for lump-sum payments must be reported on Form 1099-S, Proceeds From Real Estate Transactions.
Report sales of agricultural commodities under a regulated futures contract, sales of derivative interests in agricultural commodities, and sales of receipts for agricultural commodities issued by a designated warehouse on Form 1099-B. A designated warehouse is a warehouse, depository, or other similar entity designated by a commodity exchange in which or out of which a particular type of agricultural commodity is deliverable to satisfy a regulated futures contract. Sales of warehouse receipts issued by any other warehouse are not reportable.
A sale of a precious metal (gold, silver, platinum, or palladium) in any form for which the Commodity Futures Trading Commission (CFTC) has not approved trading by regulated futures contract (RFC) is not reportable. Further, even if the sale is of a precious metal in a form for which the CFTC has approved trading by RFC, the sale is not reportable if the quantity, by weight or by number of items, is less than the minimum required quantity to satisfy a CFTC-approved RFC.
For example, a broker selling a single gold coin does not need to file Form 1099-B even if the coin is of such form and quality that it could be delivered to satisfy a CFTC-approved RFC if all CFTC-approved contracts for gold coins currently call for delivery of at least 25 coins.
Sales of precious metals for a single customer during a 24-hour period must be aggregated and treated as a single sale to determine if this exception applies. This exception does not apply if the broker knows or has reason to know that a customer, either alone or with a related person, is engaging in sales to avoid information reporting.
Sales of digital assets.
A digital asset is a digital representation of value that is recorded on a cryptographically secured distributed ledger or any similar technology.
For sales of digital assets that are also securities, commodities, or other financial instruments, the existing rules for reporting on Form 1099-B continue to apply. For other digital asset sales that a broker has effected for customers, the broker is not required to file a Form 1099-B but may voluntarily file a Form 1099-B for each customer and will not be subject to penalties under section 6721 or 6722 for failure to report or furnish the information correctly. For rules on penalty relief for voluntary reporting, see proposed regulations (REG-122793-19), published August 29, 2023.
Exemption certificate.
A broker may require an exempt recipient to file a properly completed Form W-9, Request for Taxpayer Identification Number and Certification, or similar form. A broker may treat an exempt recipient that fails to do so as a recipient that is not exempt. See part J in the current General Instructions for Certain Information Returns for more information.
Any person that transfers custody of a specified security (defined later) to a broker after 2010 (after 2011 if the stock is in a regulated investment company, and after 2014 for certain debt instruments, options, and securities futures contracts) must give the broker a written transfer statement within 15 days after the date of settlement for the transfer.
The transferor must furnish a separate statement for each security and, if transferring custody of the same security acquired on different dates or at different prices, for each acquisition. However, a separate statement is not required for:
These rules apply to:
These rules do not apply to:
Information required.
Each transfer statement must include:
For all option transfers, include the following.
The adjusted basis, original acquisition date, holding period adjustment, and the additional information for a debt instrument or option described above are not required if the transfer statement identifies the security as a noncovered security.
If the names of the customer(s) for the transferring and receiving accounts are not the same, the transfer statement must also include the name of the customer(s) for the account to which the security is transferred. However, if the transfer is to or from an account for which a broker, custodian, or other person subject to the transfer reporting rules is the customer, the transfer statement must treat the beneficial owner or, if applicable, an agent substituted by an undisclosed beneficial owner, as the customer for both accounts, and the broker receiving the transfer statement should treat the security as held for the beneficial owner or the beneficial owner's agent regardless of the customer listed for the broker's account.
The person furnishing and the broker receiving the transfer statement can agree to combine the information in any format or to use a code in place of one or more required items. The transferor should determine the adjusted basis and other information to be reported as explained in these instructions. If the basis of the transferred security is determined using an average basis method, any securities acquired more than 5 years prior to the transfer may be reported on a single statement on which the original acquisition date is reported as “various,” but only if the other information reported applies to all the securities.
Effect on Form 1099-B and other transfer statements.
In preparing Form 1099-B or a transfer statement for securities you transfer to someone else, you must take into account all the information (other than securities classifications) reported on a transfer statement you receive, unless the statement is incomplete or you know it is incorrect. If you do not receive a required transfer statement by the due date, you must request one from the transferor. If a complete transfer statement is not furnished, either after you requested one or because no transfer statement was required, you may treat the security as noncovered. However, you must file a corrected Form 1099-B within 30 days of receiving a transfer statement indicating that the security is a covered security. But you do not have to file a corrected Form 1099-B if you receive the statement more than 3 years after you filed the original Form 1099-B. You must also furnish a corrected transfer statement within 15 days of receiving a transfer statement indicating that a security is a covered security if you transferred the security transferred to you. But you do not have to furnish a corrected transfer statement if you receive the transfer statement more than 18 months after you furnished your transfer statement.
More information.
For more information about transfer statements, including definitions, exceptions, rules for gift transfers, transfers from a decedent's estate, and transfers of borrowed securities, see Regulations section 1.6045A-1.
An issuer of a specified security (defined later) that takes an organizational action that affects the basis of the security must file an issuer return on Form 8937. This applies to organizational actions after 2010 (after 2011 if the stock is in a regulated investment company, and after 2013 for debt instruments, options, and securities futures contracts). The return is due on or before the 45th day following the organizational action or, if earlier, January 15 of the next calendar year.
An issuer is not required to file this return if, by the due date, the issuer posts the return with the required information in a readily accessible format in an area of its primary public website dedicated to this purpose and, for 10 years, keeps the return accessible to the public on its primary public website or the primary public website of any successor organization. An issuer may electronically sign a return that is publicly reported on the issuer’s public website. The electronic signature must identify the individual who is signing the return.
Effect on Form 1099-B and transfer statements.
In preparing Form 1099-B or a transfer statement, you must take into account all the information reported by the issuer of the security on a statement that the issuer furnishes to you or is deemed to furnish to you, unless the issuer statement is incomplete or you know it is incorrect. Take into account only those organizational actions taken by the issuer of the security during the period you held custody of the security (beginning with the date on which you received a transferred security). If you receive or are deemed to receive an issuer statement after filing Form 1099-B, you must file a corrected Form 1099-B within 30 days of receiving the issuer statement. But you do not have to file a corrected Form 1099-B if you receive the issuer statement more than 3 years after you filed the original Form 1099-B. If you receive or are deemed to receive an issuer statement after furnishing a transfer statement for a covered security, you must furnish a corrected transfer statement within 15 days of receiving the issuer statement. But you do not have to furnish a corrected transfer statement if you receive the issuer statement more than 18 months after you furnished the original transfer statement.
More information.
For more information, see Form 8937 and its instructions, and Regulations section 1.6045B-1.
A barter exchange is any person or organization with members or clients that contract with each other (or with the barter exchange) to jointly trade or barter property or services. The term does not include arrangements that provide solely for the informal exchange of similar services on a noncommercial basis. Persons who do not contract with a barter exchange but who trade services do not file Form 1099-B. However, they may have to file Form 1099-MISC.
Transactional/aggregate reporting.
Barter exchanges involving noncorporate members or clients must report each transaction on a separate Form 1099-B. Transactions involving corporate members or clients of a barter exchange may be reported on an aggregate basis.
Member information.
In the recipient area of Form 1099-B, enter information about the member or client that provided the property or services in the exchange.
Exceptions.
Barter exchanges are not required to file Form 1099-B for: