Broker and Barter Exchange Transactions

Form 1099-B is used to report proceeds from broker and barter exchange transactions. These transactions are sales made by other parties in the ordinary course of a trade or business that are overseen by the broker reporting on Form 1099-B. When reporting to the IRS, brokers must limit transactions to one per Form 1099-B.

The Form 1099-B Filing Process



Payer
Payer
Form 1099-MISC

Form 1099-B

Subcontractors

Broker and Barter Exchange Transactions

icon12
Recipient

Recipient Delivery

February
15

Due Date

Federal Filing

IRS Federal Filing

State e-file
State E-filing

State Filing

Due Date

Depends on each state

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Paper Filing

if
>250 files

E-filing

February
28

Due Date

March
31

Due Date

Important Deadlines for the 2016 Tax Year

Feb

15

Wednesday

due date calendar

Recipient Copies Must Be Mailed

Feb

28

Tuesday

due date calendar

Paper Copies Must Be Filed with the IRS

Mar

31

Friday

due date calendar

Electronic Copies Must Be E-Filed with the IRS

WHO NEEDS TO FILE FORM 1099-B?

Form 1099-B must be filed by a broker or barter exchange for each person

  • For whom the broker sold stocks, commodities, regulated futures contracts, foreign currency contracts, forward contracts, debt instruments, options, securities futures contracts, etc. for cash. This includes short sales.
  • Who received cash, stock, or other property from a corporation that the broker knows has had its stocks acquired in an acquisition of control or had a substantial change in capital structure reportable on Form 8806.
  • Who exchanged proeprty or services through a barter exchange.

WHERE CAN I FILE FORM 1099-B?

If you have more than 250 1099-B Forms to file, the IRS requires you e-file those forms. Even if you don't have that many to file, the IRS recommends e-filing anyway since it's easier and more secure. You can print, complete, and mail 1099-B Forms directly with the IRS yourself, or you can e-file 1099-B Forms simply, quickly, and securely with ExpressTaxFilings!. For more information regarding IRS Form 1099-B visit https://www.irs.gov/pub/irs-pdf/f1099b.pdf.

STEPS TO E-FILE FORM 1099-B

  • Sign into your ExpressTaxFilings account (or create one!)
  • Start a Form 1099-B return
  • Add payer details (Name, Address, Federal ID Number)
  • Add recipient details (Name, Address, ID Number)
  • Add transaction details (Description of Property, Relevant Dates, Proceeds, Costs, Tax Info, etc.)
  • Review your order and select whether you'd like your recipient forms mailed for you
  • Add credit card details for the one-time transmittal fee
  • E-file Form 1099-B with the IRS

Have a lot of 1099-B Forms to send?

Use our Bulk Upload feature to upload an Excel/CSV file to create multiple 1099-B Forms in no time! You can download our Excel template or use a customized template of your own to upload your data.

PENALTIES FOR FAILING TO FILE FORM 1099-B

If you fail to file Form 1099-B by the IRS deadline, you may be subject to an IRS penalty. Your penalty amount is determined by when you eventually file your form based on the following:

  • $30 per form if you file correctly within 30 days of the original deadline; maximum penalty: $250,000/year ($75,000 for small businesses*)
  • $60 per form if you file after 30 days but before August 1; maximum penalty: $500,000/year ($200,000 for small businesses)
  • $100 per form if you file after August 1 or not at all; maximum penalty: $1,500,000/year ($500,000 for small businesses)

*Small businesses are those with average annual gross receipts of less than $5 million for the three most recent tax years ending before the calendar year in which the information returns were due (or for the period you've been in existence, if fewer than 3 years).