How to Fill Out IRS Form 1099-B. IRS Form 1099-B is sent to those taxpayers who received proceeds from broker and barter exchange transactions. This article is written from the point of view of the entity filling out the 1099-B, not the person receiving it.
Call (800) TAX-FORM or visit the IRS online form ordering website (see resources below) to obtain acceptable copies of Form 1099-B to send to recipients. Although Form 1099-B is available for viewing online, the e-version of the form is unacceptable to send to taxpayers or the Internal Revenue Service.
Check the "Void" or "Corrected" box at the top of the 1099 form if applicable. Enter the Payer's name, street address, city, state, ZIP code and telephone number in the first box. The Payer is the organization or entity that distributed the broker or barter proceeds.
Enter the Payer's Federal Tax ID number and the recipient's identification number (usually a Social Security number or an EIN) in the two boxes beneath the first box. Below this, list the recipient's name, street address (including apartment number), city, state and ZIP code. Enter the corporation's name from which stock was exchanged or bartered. If applicable, enter the account number that is associated with this transaction. Check the box if the payee has a second tax identification number.
List the trade date of the transaction in Box 1a. In Box 1b, show the CUSIP (Committee on Uniform Security Identification Procedures) number for broker transactions. In Box 2, show any aggregate proceeds from transactions involving bonds, stocks, other debt obligations, commodities or forward contracts. Indicate cash received by the recipient, the fair market value of any property or services the taxpayer received and the fair market value of any scrip or trade credits posted to the recipient's account as a result of a barter exchange. Check the applicable box to indicate if the amount reported to the IRS in Box 2 represents Gross Proceeds or Gross Proceeds minus commissions and option premiums.
Note any income tax that was withheld as a backup by you, the payer, in Box 4. If the recipient did not provide you with a Tax ID number, you are required to list a 28% withholding of the proceeds paid to the recipient. In Box 5, show the number of shares of the corporation's stock the recipient held which were exchanged during the change in control or substantial change in capital structure. Similarly, Box 6 shows the classes of the corporation's stock that were exchanged during the change in control or substantial change in capital structure.
Show a brief description of the item or service for which the proceeds or bartering income is being reported in Box 7. In Box 8, indicate the profit or loss realized on regulated futures or foreign currency contracts closed during the current year. Box 9 shows any year-end adjustment to the profit or loss shown in box 8 due to open contracts at the end of the tax year. Box 10 reveals the unrealized profit or loss on open contracts held in the recipient's account as of December 31 of the current year. Based on the amounts in Boxes 8, 9 and 10 figure the aggregate profit or loss and display this number in Box 11. If the recipient can not take a loss on the amount in Box 2, check off Box 12.
File Form 1099-B with the IRS; also send a copy to the recipient. Check the IRS official website (see Resources below) for specific instructions as to the filing deadline for Form 1099-B; it changes annually.