Department of the Treasury
Internal Revenue Service
Instructions for Form 1099-B
Proceeds From Broker and Barter Exchange Transactions
Section references are to the Internal Revenue Code
You are considered a broker if:
unless otherwise noted.
You are an obligor that regularly issues and retires its
own debt obligations, or
You are a corporation that regularly redeems its own
For the latest information about developments related to
However, for a sale, redemption, or retirement at an office
Form 1099-B and its instructions, such as legislation
outside the United States, only a U.S. payer or U.S.
enacted after they were published, go to
middleman is a broker. See Regulations sections
1.6045-1(g)(1) and 1.6049-5(c)(5).
You are not considered a broker if:
In addition to these specific instructions, you should also
You are a corporation that purchases odd-lot shares
use the 2018 General Instructions for Certain Information
from its stockholders on an irregular basis (unless facts
Returns. Those general instructions include information
about the following topics.
You manage a farm for someone else, or
Who must file (nominee/middleman; certain FFIs and
You are an international organization that redeems or
U.S. payers that report on Form(s) 1099 to satisfy their
retires its own debt. See Regulations section 1.6045-1(a)
chapter 4 reporting requirements).
When and where to file.
Electronic reporting requirements.
Corrected and void returns.
How many transactions to report on each form.
Statements to recipients.
Report each transaction (other than regulated futures,
Taxpayer identification numbers (TINs).
foreign currency, or Section 1256 option contracts) on a
separate Form 1099-B. Report transactions involving
regulated futures, foreign currency, or Section 1256
The definitions of terms applicable for chapter 4
option contracts on an aggregate basis. However, you
purposes that are referenced in these instructions.
may report these contracts on an aggregate basis on a
Other general topics.
separate Form 1099-B for each type of contract.
You can get the general instructions from
How many forms to file for each transaction. Report
Instructions for Certain Information Returns
sales of each of the following types of securities on a
or go to IRS.gov/Form1099B.
separate Form 1099-B, even if all three types were sold in
a single transaction.
Covered securities (defined later) with short-term gain
A broker or barter exchange must file Form 1099-B,
Proceeds From Broker and Barter Exchange
Covered securities with long-term gain or loss.
Transactions, for each person:
Noncovered securities (securities that are not covered
For whom the broker has sold (including short sales)
securities) if you choose to check box 5 when reporting
stocks, commodities, regulated futures contracts, foreign
currency contracts (pursuant to a forward contract or
Substitute statements. Brokers that use substitute
regulated futures contract), forward contracts, debt
statements may be able to report customer transactions
instruments, options, securities futures contracts, etc., for
(stock sales (Form 1099-B), interest earned (Forms
1099-INT and OID), dividends (Form 1099-DIV), and
Who received cash, stock, or other property from a
foreign taxes paid (Forms 1099-DIV and 1099-INT)) for
corporation that the broker knows or has reason to know
the year on a single substitute statement. For details, see
has had its stock acquired in an acquisition of control or
Pub. 1179, General Rules and Specifications for
had a substantial change in capital structure reportable on
Substitute Forms 1096, 1098, 1099, 5498, and Certain
Form 8806; or
Other Information Returns, which provides the rules for
Who exchanged property or services through a barter
Additional information required for covered securi-
ties. For each sale of a covered security for which you
A broker is any person who, in the ordinary course of a
are required to file Form 1099-B, report the date of
trade or business, stands ready to effect sales to be made
acquisition (box 1b), whether the gain or loss is short-term
by others. A broker may include a U.S. or foreign person
or long-term, and whether any portion of the gain or loss is
or a governmental unit and any subsidiary agency.
ordinary (box 2), cost or other basis (box 1e), the amount
of accrued market discount (box 1f), and the loss
Aug 17, 2017
Cat. No. 64171A