Form 1099-B, the "Proceeds from broker and barter exchange transactions" form, is a tax document used by the Internal Revenue Service (IRS) in the United States. This form is used to report income from bartered transactions and from selling stocks, bonds or other commodities.

Applicable Sales

According to the IRS, Form 1099-B reports the income from "stocks, bonds, commodities, regulated futures contracts, foreign currency contracts (pursuant to a forward contract or regulated futures contract), forward contracts, debt instruments, etc." It also must reflect certain income received from a corporation that "has undergone a change in control or substantial change in capital structure."

Brokers

The IRS requires brokers to provide a completed Form 1099-B to sellers of stocks, bonds and other commodities. These brokers must provide a copy of the form to both the IRS and the seller.

Sellers

Form 1099-B should be received by anyone who sold stocks, bonds, or other commodities during the calendar year or benefited from a barter exchange. The recipient is responsible for reporting the financial information on Schedule D of the current annual tax return. This income is taxable.

Barter Exchanges

The IRS has a specific definition of a barter exchange; it is an organization that is designed for the purpose of exchanging property. Barter exchanges must furnish a Form 1099-B to any recipients of goods and services through the exchange.

Reported Data

A completed form 1099-B includes information to identify the taxpayer, such as the name, taxpayer identification number and account number. It will also include information specific to the sale or exchange of the commodity, including the sale date, the profit or loss from the sale, the bartered amount, the number and class of stock.

New deadline

Prior to 2008, the deadline for submitting Form 1099-B was February 1. In 2008, the deadline changed; the new due date is February 15.

Source:

IRS: Informational Returns

Investopedia: What Does Form 1099-B Mean?

IRS: Instructions for Form 1099-B

Resource:

H & R Block: Reading Your 1099