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1099-B Deadline Guide For 2026: Dates, Penalties, and Filing Tips for Payers

Every broker or barter-exchange payer must file Form 1099-B for each customer for whom they sold investments on their behalf, or handled distributions after a company restructuring, and for anyone who participated in a barter exchange.

Besides ensuring accurate reporting with the IRS, filing the form before the official Form 1099-B due date 2026 is essential to avoid escalating penalties and maintain investor confidence.

The Importance of Form 1099-B Deadlines

The biggest challenge for most payers when it comes to Form 1099-B filing is meeting the filing deadline. Here’s why it’s important to meet the 1099-B due dates for 2026:

Avoid Notices & Backup Withholding

CP2100 or CP2100A notices are generated when the name and TIN combination do not match the information in the IRS database. This commences the B-Notice and backup withholding, so a 1099-B has to be filed.

Prevent Penalties for Late Filing

For 2025 tax filings (to be filed in 2026), IRS penalties range from $60 to $130 or $340 per return, based on how late it is filed. The penalty can go up to $680 for intentional disregard. Filing on time helps you avoid all these additional costs that can add up if you are filing for multiple clients.

Operational Advantage

Staying ahead of the Form 1099-B due date gives your team more time to fix any TIN issues that may arise, reconcile trade data, and avoid repeated file transmissions.

Form 1099-B Key Deadlines for 2026

Date (For TY 2025 – to be filed in 2026) Filing Type
Tue, Feb 17, 2026* Furnish Copy B to recipients
Mon, Mar 2, 2026 Paper file Copy A + Form 1096 (Only if filing less than 10 returns)
Tue, Mar 31, 2026 E-file Form 1099-B
Tue, Mar 31, 2026 File Form 8809 extension 1099-B to get an automatic 30-day filing extension

*Feb 15 is the original deadline. But since it falls on a weekend and Feb 16 is Presidents’ Day, the due date has been moved to the closest business day.

Understanding the Recipient-Copy Deadline For Form 1099-B

The recipient copy deadline or the last day of furnishing Copy B of 1099-B to your clients/investors is usually February 15. But since this date falls on a weekend, the deadline has been extended to February 17, 2026 (Feb 16 is President’s Day, a federal holiday).

If your recipients consent, you can send copies to them electronically, provided they can easily opt out. IRS regulations stipulate that these statements must remain accessible until October 15.

If you’re using substitute statements, be sure to follow the formatting rules in Publication 1179 to stay compliant.

IRS Filing Deadlines & the 10-Return E-File Mandate

The 10-return e-file mandate is only applicable if you have fewer than 10 aggregate information returns across all categories (1099s, W-2s, 5498, etc.). For payers submitting physical copies, the 1099-B paper filing on March 2, 2026, is the last day to mail Copy A with Form 1096.

Copy A Requirements

Paper filers must use official red-ink Copy A forms and attach a separate Form 1096 for each type of 1099. For 1099-B, this means you check the “1099-B” box on Form 1096.

Electronic Filing Options

You can e-file Form 1099-B via:

  • Tax1099: IRS-authorized eFiling platform with in-built TIN match, audit trail, data import options, & more.
  • FIRE: IRS filing portal. Requires a FIRE TCC (Legacy Transmitter Control Code).
  • IRIS: Browser-based system with its own IRIS TCC.

Extensions, Corrections, & Safe Harbors

Form 8809 Extension 1099-B

You can request a 30-day extension for filing Copy A by submitting Form 8809 on or before the original deadline with no explanation required. This will give you an automatic extension to file, not for recipient copy distribution.

Form 15397 (Recipient Extension)

If there’s a genuine hardship, such as a disaster affecting your data systems, you can request a single 30-day extension for furnishing recipient copies.

De Minimis Safe Harbor

According to IRS sections 6721/6722, errors of $100 or less for the amount reported and $25 or less for withholding will not require a correction unless the recipient requests one.

How to Correct a 1099-B

  • Mark CORRECTED at top of new 1099-B.
  • Re-enter all data, not just the fix.
  • Furnish to the recipient and re-file Copy A electronically.

Penalties for Missing the 2026 Deadlines

Filing Date (2026) Penalty per Form Maximum Annual Exposure
≤ 30 days late $60 $683,000
31 days – Aug 1 $130 $2,049,000
After Aug 1 $340 $4,098,500
Intentional disregard $680 No cap

Amounts adjust for inflation annually; always check the latest IRS update each November.

Example

If you file 2,500 Forms 1099-B after August 1:

2,500 × $340 = $850,000 in penalties.

Penalty Relief

You may request an abatement if you can show reasonable cause, such as a system failure supported by documentation.

State Reporting & Combined Filing Updates

The IRS Combined Federal/State Filing (CF/SF) Program forwards certain 1099s, including 1099-B, to participating states. However, you should still verify any state-specific requirements.

States Requiring Direct Filing

Some states, such as California, Pennsylvania, Oregon, New Jersey, and West Virginia, require direct reporting for 1099-B even if they are part of CF/SF.

Zero-Threshold States

Some states require reporting 1099-B transactions even when the recipient is a non-resident. Always verify nexus and reporting thresholds.

Real-Life Scenarios (TY 2025)

Situation Correct Action
1 Broker issues a consolidated 1099 on Feb 17 Furnish recipient copy by Feb 17 and e-file by Mar 31
2 12 barter trades under one EIN E-file 1099-B and report all the barter trades in one form
3 Copy mailed Feb 20 due to snowstorm Late furnishing of Copy B leads to $60 per return penalty unless Form 15397 applies
4 Basis error found Apr 15 File a CORRECTED 1099-B. Penalty may apply unless safe harbor applies
5 Missing TIN, but 24% backup withheld File 1099-B and report the backup withholding in Box 4

FAQs

1. Does the Feb 17, 2026 deadline ever fall earlier?

If Feb 15 is not a weekend or holiday. In 2026, Presidents’ Day pushes it to Feb 17.

2. Is Form 8809 an automatic extension for 1099-B?

Yes, Form 8809 extension 1099-B can be filed by the original deadline to get an automatic 30-day extension to file.

3. Do all states follow CF/SF?

Some states like, CA, PA, OR, NJ, and WV, may direct uploads. Check state specific requirements before proceeding.

4. Do 1099-DA forms follow the same deadlines?

Yes, TY 2025 Forms 1099-DA follow the Feb 17 (recipient) and Mar 31 (e-file) deadlines.

5. What triggers backup withholding?

Missing or invalid TINs or an IRS CP2100 notice require backup withholding at 24%.

Avoid 1099-B late-filing penalties and protect investor trust with Tax1099.

Simplify your reporting workflow by preparing early, validating every TIN, and meeting the Form 1099-B due date in 2026.