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How to File Form 1099-B in 2026: Step-by-Step Guide for Brokers & Barter Exchanges

Handling year-end 1099-Bs can feel less like “simple reporting” and more like stitching together thousands of trades, basis details, and correction files. If you’re a broker or barter exchange, missing even a small piece of that picture can trigger IRS mismatch notices, rework, or strained client relationships. This guide walks you through how to file 1099-B for the 2025 tax year (due in 2026), step by step, so you can report every sale or trade accurately, on time, and with fewer surprises.

Why Form 1099-B Matters

Form 1099-B is how the IRS sees every reportable sale or exchange of stocks, funds, options, and other capital assets you report on that form not just the gains you think are “important.” The numbers you file are matched against your clients’ Schedule D and Form 8949, so gaps or mismatches can quickly turn into IRS notices and follow-up questions.

(Note that for digital-asset (crypto and similar) sales that occur in 2025 and later, brokers generally must report gross proceeds on new Form 1099-DA (filed beginning in early 2026) instead of Form 1099-B, subject to limited exceptions such as certain tokenized securities and section 1256 contracts.)

On top of that, incorrect or late 1099-Bs can trigger per-form penalties: $60 if fixed within 30 days, $130 if corrected by August 1, $340 after that, and at least $680 per form if the IRS views it as intentional disregard. One clean, on-time submission is manageable, but a stack of corrections can quietly wipe out a day and a lot of goodwill with clients.

Who Must File Form 1099-B & When?

If you sit in any of the following roles, the default assumption is that you file.

  • Brokers and dealers that execute sales for customers (traditional brokerage firms, online trading platforms, and similar intermediaries).
  • Regulated futures commission merchants that clear or carry customer accounts for regulated futures or certain foreign currency contracts.
  • Formal barter exchanges that run organized trade accounts for members or clients. Casual peer-to-peer swaps that don’t go through a barter exchange generally fall outside Form 1099-B.

In all of these cases, you’re the “payer” from the IRS’s perspective, and you’re the one responsible for issuing and filing 1099-B.

What about digital-asset brokers?

Starting with 2025 transactions, most brokers that handle digital assets (crypto, certain tokens, some NFTs) will report those sales on Form 1099-DA, not Form 1099-B. If the asset is both a security and a digital asset (a “dual-classification asset”), you generally still move it to 1099-DA, with a few narrow exceptions described in the 1099-B instructions. First 1099-DA forms go to the IRS and customers in 2026.

Is there a dollar threshold?

There isn’t a simple “only if over $X” rule for most broker sales. Usually,

  • Brokered sales: Reportable regardless of size there is no general minimum dollar threshold for customer sales if the customer isn’t an exempt recipient.
  • Barter exchanges: The instructions carve out limited exceptions. A barter exchange does not have to file 1099-B if it has fewer than 100 exchanges for the year, or if a particular exchange has a fair market value under $1.
  • Very small fractional-share sales: IRS instructions generally treat Form 1099-B amounts as reportable regardless of size, but there is a specific de minimis exception brokers are not required to file Form 1099-B for sales of fractional shares of stock if the gross proceeds are less than $20 (though they may choose to file); outside that narrow rule and other specific exceptions in the Form 1099-B instructions, brokers must still report all amounts unless the payee is an exempt recipient.

So, for a typical broker or platform, assume you must report even “tiny” trades unless you are clearly inside one of these written exceptions or dealing with an exempt recipient (for example, many corporations, IRAs, and charities).

Mandatory e-file rule (10-return aggregate test)

The electronic-filing mandate is now very low. If, for a calendar year, you issue 10 or more information returns in total counting all covered types together (W-2, any 1099s, 1095, etc.) you must e-file, unless you qualify for and receive an IRS waiver. You don’t get a separate 10-form allowance for each type.

Form 1099-B Deadlines for 2025 Sales (Filed in 2026)

For 2025 transactions, your 2026 due dates line up as follows:

Action Due date (2026) Why this date matters
Give Copy B to payees February 17, 2026 Normal deadline is February 15, but in 2026, February 15 is a Sunday
and February 16 is Presidents’ Day, so the due date moves to the next business day.
Paper-file Copy A and Form 1096 with the IRS March 2, 2026 Paper Forms 1099-B are generally due by February 28 (or February 29 in a leap year).
If that date falls on a weekend or legal holiday, it moves to the next business day.
For 2025 Forms 1099-B filed in 2026, that date is Monday, March 2, 2026.
E-file 1099-B with the IRS (FIRE / IRIS) March 31, 2026 1099-B e-file deadline, along with most other 1099 forms, remains March 31.

Expert Tip: If you’re anywhere near the 10-return threshold, plan around e-file only building a paper workflow for a year or two and then scrapping it is usually wasted effort.

State filing reminder

Federal filing is only half the story. Many states rely on the IRS Combined Federal/State Filing (CF/SF) Program, where the IRS forwards eligible 1099 data to the state. California is in this group for the most common 1099 types, including 1099-B, so in many cases, a separate state upload isn’t required.

Other states either do not participate or have their own rules. For example, New York currently does not require most standard 1099 forms (like 1099-NEC, 1099-MISC, 1099-INT, or 1099-B) to be filed at the state level (and does not participate in CF/SF), though it has separate rules for 1099-K.

Bottom line: treat federal and state as two checklists. CF/SF often helps, but you still need to confirm each state’s 1099-B rules before you assume you’re done.

Pre-Filing Checklist

Before you build a single 1099-B file, make sure these pieces are locked down:

  • Collect W-9s and run TIN Match so name/TIN issues don’t snowball into CP2100 “B-Notices” and backup withholding.
  • Pull complete trade data trade dates, ticker or crypto symbol, quantity, gross proceeds, and cost basis, where you’re responsible for tracking it.
  • Flag special items early wash sale losses, backup withholding, accrued market discount, and any 1099-B cost-basis flag that pops up when you import data.
  • Separate positions by tax bucket, which means short-term vs long-term lots and keeping futures or other Section 1256 contracts in their own lane.
  • Verify payer details so your legal name, EIN, address, and phone match exactly what the IRS has on file.
  • Reconcile totals so your clearing or brokerage statements tie out to the file you’re about to upload.
  • Send a test file (if available) using IRS FIRE test mode or your e-file provider’s sandbox to catch format or schema errors before the live transmission.

Filling Out Form 1099-B: Box-by-Box Guide

Box What Goes Here Quick Tip
1a-1f Core trade details: what was sold (shares/units), date acquired, date sold,
gross proceeds, cost or other basis, and any accrued market discount.		 Make the description clear enough to trace it back to the lot.
For fractional shares, carrying quantities to four decimals is standard.
1d Gross cash proceeds from the sale or exchange
(generally already net of commissions/fees in broker systems).		 Confirm Box 2 (“Type of gain or loss”) matches the lot’s holding period.
Losses may appear in parentheses for certain contracts.
3 Checkbox if Box 1d proceeds are from collectibles or a Qualified Opportunity Fund (QOF). Check only for true collectibles (art, coins, metals) or QOF interest
it changes how the payee reports on Schedule D/Form 8949.
4 Federal income tax withheld for this transaction (mainly backup withholding). Any withholding due to missing/incorrect TIN must appear here and
reconcile to Form 945 totals. Most standard trades will be zero.
1g Total loss disallowed under wash sale rules for this sale. Enter the full disallowed loss. The investor adjusts the basis of
replacement shares by this amount on Form 8949.
8 Profit or (loss) on closed regulated futures, foreign currency,
or Section 1256 option contracts.		 Use Boxes 8–11 only for §1256/MTM contracts never mix in equity trades.
12 Checkbox showing whether the basis in Box 1e is being reported to the IRS. If Box 5 (noncovered security) isn’t checked, you typically check Box 12.
If you check Box 5 but still report basis, check Box 12 too.
FATCA filing requirement
(Header checkbox)		 Indicates this 1099-B satisfies a chapter 4 (FATCA) reporting requirement
for certain foreign accounts/payees.		 Most domestic brokerage/barter accounts leave this blank.
Check only if your FATCA/compliance process flags the account.
14-16 State abbreviation, filer’s state ID, and any state income tax withheld. Use the two-letter postal code, the exact state ID assigned to you,
and the correct withheld amount. Up to two states can be reported.

Note: When you need to fix a return that has already been filed, mark CORRECTED at the top and follow the IRS correction procedures when you send the new data. Use the VOID box only to void a form before it is submitted to the IRS an “X” in the VOID box does not correct a previously filed return. Pick one status per form never both on the same slip.

How to File 1099-B with Tax1099

  1. Sign up or log in: Create your Tax1099 account (or log in), then choose Create New Form and pick 1099-B.
  2. Add your data: For a small volume, key in the form details on screen. For larger files, import via CSV upload, API, or scheduled SFTP (encrypted in transit).
  3. Clear any alerts: Tax1099 flags missing TINs, invalid dates, and basis/withholding issues. Fix these before you move on, so the IRS file sails through.
  4. Preview your forms: Review the on-screen version and, if needed, download a sample PDF so compliance, legal, or the front office can sign off.
  5. Deliver payee copies: Choose how recipients get their forms: electronic delivery, mailed paper copies, or a mix of both.
  6. E-file with the IRS: Submit the batch. Tax1099 sends your 1099-B file electronically and pulls back the IRS acknowledgment (ACK) for your records.
  7. File corrections when needed: Use the “Make Correction” flow to reopen a record, update only the boxes that changed, and re-file the corrected 1099-B.
  8. Archive and audit: Tax1099 stores PDFs, XML, and ACK files for multiple years. You can export reconciliation CSVs anytime for audits, internal reviews, or tie-outs.

Form 1099-B Common Errors and Quick Fixes

Error Why Does It Cause Problems? Quick Fix
Leaving the “basis reported to IRS” box blank for covered shares The IRS expects the basis to be reported for covered securities. If the box is left blank, it can lead to mismatch notices and extra follow-up. File a corrected 1099-B and check “Yes” so it clearly shows that the basis was reported.
Adding option premiums to proceeds Putting premiums in the proceeds box overstates what the client “sold” the asset for and can make them look over-taxed. Move the premiums into cost basis (where the rules require it), rebuild the total, and send a corrected form.
Skipping required state filing Some states still expect their own copy, even if the IRS already has one. Missing forms can lead to state penalty letters. Check each state’s rule and file through CF/SF or direct state e-file via your provider.
Mailing paper when you have 10 or more information returns If you’re over the 10-return threshold and still mail paper, the IRS can treat the forms as not filed, which may trigger per-form penalties ($60, $130, $340, or at least $680 for intentional disregard). Switch to e-file for all information returns or apply for an IRS waiver if you truly can’t file electronically.
Using the wrong TIN (or a bad name/TIN combo) The IRS may send you a “B-Notice” and require 24% backup withholding on future payments until it’s fixed. Get a fresh Form W-9, correct the name/TIN in your system, start or stop backup withholding as required, and file a corrected form if needed.

Real-Life Examples

Here are some real-life practical scenarios and how filers need to treat them while filing Form 1099-B:

What happened How the payer reports it What it leads to
Investor sells 150 AAPL shares for $27,000, and you know the cost basis Put $27,000 in Box 1d. If you’re reporting the basis to the IRS, check Box 12.
Box 2 shows whether it’s short-term or long-term.		 IRS sees the same sale the investor reports on Form 8949 / Schedule D, so no mismatch notices.
Customer sells 0.5 BTC for $17,500, but you don’t have basis For a 2025 sale, report this on Form 1099-DA, not Form 1099-B.
Put $17,500 in Box 1f (proceeds). Leave Box 2 (basis reported to IRS) unchecked if you’re not reporting basis.
Box 6 still shows whether the gain or loss is short-term or long-term.		 The customer reports the sale and adds their own basis on Form 8949.
Member gets $3,200 of services through a barter exchange Report $3,200 in Box 13 (“Bartering”) on Form 1099-B and use the credit date as the sale/exchange date in Box 1c. The member picks up $3,200 of income; exchange has a clean record for the IRS.
A $450 loss is disallowed under the wash sale rules Put $450 in Box 1g as the wash sale loss disallowed. The loss is properly limited, and the investor adjusts the basis of their replacement shares.
Trader has $9,000 profit on futures or other §1256 contracts for the year Put $9,000 in Box 8 for profit (or loss) on futures/Section 1256 contracts. The number feeds into the payee’s Form 6781, which handles the 60/40 capital-gain split.
You withheld $600 in backup withholding on a stock sale Put $600 in Box 4 for federal income tax withheld. The payee can claim the $600 as a credit on their return, and you avoid a backup withholding underpayment issue.

FAQs

1. Do I file for $5 sales?

For a normal stock or fund sale by a non-exempt customer, you generally still report it on Form 1099-B, even if the proceeds are only $5. There are narrow carve-outs for example, IRS instructions say you do not have to file Form 1099-B if only fractional shares are sold and the total proceeds are under $20, and there are separate exceptions in the instructions for certain barter-exchange activity. But those are the exceptions, not the rule, and the investor may still have to report the sale on their return.

2. Does Form 1099-B cover crypto trades?

No, 1099-B crypto rules have changed. For 2025 digital-asset sales, brokers move to Form 1099-DA, which reports gross proceeds from crypto and other digital assets, with forms going to the IRS and customers in early 2026. If an asset is both a “security” and a “digital asset,” the default is still to use 1099-DA unless any of the specific exceptions in the 1099-B/1099-DA instructions apply.

3. What if the cost basis is missing?

You don’t skip the form. You report the sale anyway, put the full gross proceeds in Box 1d, and do not check Box 12 (basis reported to IRS) if you aren’t sending basis. The payee then adds their own basis and adjustments on Form 8949 and carries it to Schedule D.

4. Can I group trades on one form?

For regular securities stocks, ETFs, mutual funds, most options you treat each sale as its own transaction on Form 1099-B. Aggregating into one line is generally reserved for regulated futures, foreign currency contracts, and other section 1256 contracts, where summary reporting is allowed and flows into Form 6781.

5. How do I fix a wrong CUSIP or description?

You correct it with another form. File a CORRECTED Form 1099-B, fix the CUSIP or description (and anything directly tied to it, like quantity if that also changed), and leave everything else identical. Send the corrected copy to the IRS and the payee so the matching system sees a clean before/after trail.

6. What to do if more time is needed to file?

There are two separate extensions. To push out your IRS filing deadline for 1099-B, you file Form 8809, which typically gives you an extra 30 days if you submit it no later than the original due date. If you want to extend the date you furnish recipient copies, you fax Form 15397; if approved, that usually buys up to 30 extra days, but the fax has to reach the IRS by the original recipient-statement due date.

7. Do I have to send state copies?

Sometimes the federal filing is enough, sometimes it isn’t. Many states get their 1099-B data through the Combined Federal/State Filing (CF/SF) Program, so when you e-file with the IRS, the information is forwarded automatically California is one example. Other states still want a direct state file, especially if you withheld state tax, or if they don’t rely fully on CF/SF. Some, like New York, generally don’t use CF/SF for broad 1099 filing at all and set their own 1099 rules.

If you’re filing in multiple states, the safest approach is to treat state copies as a separate checklist and confirm each state’s 1099-B rule once per year.

Skip the last-minute rush create your free Tax1099 account, upload your 1099-B file, and e-file well before March 31, 2026, so the IRS, your states, and your clients all stay in sync.

E-file Form 1099-B with Tax1099 today!