IRS Form 1099-B for 2024: Proceeds From Broker and Barter
Exchange Transactions

Who must file Form 1099-B?

Broker or barter exchanges are required to file Form 1099-B for each person:

• Brokers: A broker who sells stocks, commodities, regulated futures contracts, foreign currency contracts, forward contracts, debt instruments, options, securities futures contracts, and other financial instruments on behalf of a customer is required to file Form 1099-B. This form reports the proceeds from these sales to the IRS.
• Barter Exchange:An organization that facilitates the exchanges of property or services through barter exchange must file Form 1099-B.

What are the exceptions of Form 1099-B?

Exceptions for Brokers:While brokers are generally required to file Form 1099-B to report sales of securities and certain other transactions, there are specific exceptions where filing is not required. These include:

• Sales for Exempt Recipients:

  You are not required to file Form 1099-B for transactions involving:

  • Charitable organizations
  • IRAs
  • Archer MSAs and HSAs
  • Federal, state, or local government entities
  • Corporations (unless it involves a covered security acquired by an S corporation after 2011)
• Sales Initiated by Dealers or Financial Institutions:

  Transactions carried out by registered securities dealers and financial institutions are exempt.

• Sales by Custodians and Trustees:

  If a sale is reported on a properly filed Form 1041 (U.S. Income Tax Return for Estates and Trusts), a separate Form 1099-B is not required.

• Sales of Shares in a Money Market Fund:

  Transactions involving regulated investment companies structured as money market funds are excluded.

• Obligor Payments on Certain Obligations, which include:
  • Nontransferable obligations (e.g., savings bonds or CDs)
  • Obligations where gross proceeds are reported on other Forms 1099
  • Callable demand obligations issued before January 1, 2014, with no premium or discount
• Sales of Foreign Currency:

  Unless part of a forward or regulated futures contract requiring delivery.

• Sales of Fractional Shares of Stock:

  If gross proceeds are less than $20, filing is not required.

• Retirements of Certain Registered Obligations:

  Specifically, book-entry or registered form obligations issued before January 1, 2014, with no interim transfers.

• Sales for Exempt Foreign Persons
• Sales of Commodity Credit Corporation Certificates:

  These transactions are not reportable on Form 1099-B.

• Spot or Forward Sales of Agricultural Commodities:

  Certain agricultural transactions are excluded.

• Sales of Precious Metals:

  Some transactions involving precious metals may be exempt, depending on IRS rules.

• Options and Certain Contracts:

  The granting or purchasing of options, exercises of call options, and entering into contracts requiring personal property delivery are generally exempt.

• Sales of Short-Term Obligations:

  If issued on or after January 1, 2014. However, interest or original issue discount on such obligations may require reporting on Form 1099-INT.

Exceptions for Barter Exchanges: You are not required to file Form 1099-B for:

• Exchanges through a barter exchange with fewer than 100 transactions in a year.

• Transactions involving exempt foreign persons.

• Exchanges where property or services' fair market value (FMV) is less than $1.

Understanding these exceptions helps brokers and barter exchanges determine their reporting obligations and ensures compliance with IRS regulations.

What information is required to file Form 1099-B?

To file Form 1099-B with the IRS, the following information is required:

• Payer information such as name, address, TIN

• Recipient information such as name, address, TIN, and account number

• Transaction information, such as:

  • Description of property
  • Date of acquisition and sale or exchange
  • Gross cash proceeds received from all dispositions (including short sales) of securities, commodities, options, securities futures contracts, or forward contracts
  • Accrued market discount
  • Wash sale loss disallowed
  • Types of Gain or Loss
  • Proceeds are from Collectible or Qualified Opportunity Funds (QOF)
  • Realized or unrealized profit and loss
  • Aggregate profit or loss

• Federal income tax withheld

• Bartering information

• State filing information such as state name, state identification number, and state tax withheld

Click here to learn more about Step-by-step 1099-B instructions.

What is the deadline to file Form 1099-B?

You must be aware of the deadline related to Form 1099-B filing for the 2024 tax year, which includes:

Are there penalties for late filing of Form 1099-B?

If you do not file Form 1099-B by the deadline, the IRS will impose a late filing penalty ranging from $60 to $660 per form, depending on the size of your business and the days your return is overdue. To learn more about the details of Form
1099-B penalties, click here.

How to file Form 1099-B for 2024 with TaxBandits?

With TaxBandits, e-filing Form 1099-B is simple and secure. Just follow the steps below to get started:

• Step 1: Create an account with TaxBandits.
• Step 2: Select or add the business you are filing for.
• Step 3: Enter the required Form 1099-B details.
• Step 4: Review and transmit Form 1099-B to the IRS and State.

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