2027 Instructions for Form 1099-B

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2027

Instructions for Form 1099-B
Proceeds From Broker and Barter Exchange Transactions
Section references are to the Internal Revenue Code
unless otherwise noted.

Future Developments

For the latest information about developments related
to Form 1099-B and its instructions, such as legislation
enacted after they were published, go to IRS.gov/
Form1099B.
You can get Pub. 1099, General Instructions for Certain
Information Returns, at IRS.gov/Pub1099.

In addition to these specific instructions, you should also
use the current Pub. 1099. Those general instructions
include information about the following topics.
• Who must file.
• When and where to file.
• Electronic reporting.
• Corrected and void returns.
• Statements to recipients.
• Taxpayer identification numbers (TINs).
• Backup withholding.
• Penalties.
• The definitions of terms applicable for chapter 4
purposes that are referenced in these instructions.
• Other general topics.
Address fields. For the Payer’s and Recipient’s
information, we separated the address fields into
individual entry boxes.
Digital assets. For each digital asset sale that a broker
has effected for a customer in 2027, the broker must
complete Form 1099-DA, Digital Asset Proceeds From
Broker Transactions, as described in the instructions for
that form. If you effected a sale of a digital asset that
is also a security for which Form 1099-B would be
required (dual classification asset), you should generally
file Form 1099-DA and not Form 1099-B. There are three
exceptions to the requirement to report a sale of a dual
classification asset on a Form 1099-DA. See Sales of
digital assets, later. Additionally, certain dispositions of
digital assets held by a widely held fixed investment
trust (WHFIT) may be reported on either Form 1099-B or
Form 1099-DA. See Widely held fixed investment trusts
(WHFITs), later.
E-filing returns. The Taxpayer First Act of 2019
authorized the Department of the Treasury and the
IRS to issue regulations that reduce the 250-return
e-file threshold. T.D. 9972, published February 23,
2023, lowered the e-file threshold to 10 (calculated
by aggregating all information returns), effective for
information returns required to be filed on or after January
1, 2024. Go to IRS.gov/InfoReturn for e-file options.

Sep 8, 2026

Online fillable copies. To ease statement furnishing
requirements, Copies B, 1, and 2 are fillable online in
a PDF format available at IRS.gov/Form1099B. You can
complete these copies online for furnishing statements to
recipients and for retaining in your own files.

Specific Instructions

A broker or barter exchange must file Form 1099-B for
each person:
• For whom the broker has sold (including short sales)
stocks, commodities, regulated futures contracts, foreign
currency contracts (pursuant to a forward contract
or regulated futures contract), forward contracts, debt
instruments, options, securities futures contracts, etc., for
cash;
• Who received cash, stock, or other property from a
corporation that the broker knows or has reason to know
has had its stock acquired in an acquisition of control or
had a substantial change in capital structure reportable on
Form 8806, Information Return for Acquisition of Control
or Substantial Change in Capital Structure; or
• Who exchanged property or services through a barter
exchange.

Qualified Opportunity Funds (QOF)

A QOF is an investment vehicle organized as a
corporation or a partnership for the purpose of investing
in qualified opportunity zone property. See section
1400Z-2(d).

Reporting dispositions of QOF investments. Report
all dispositions of interests in the QOF regardless of the
identity of the person who disposed of it. For example,
if the person is a corporation, you should still file a
Form 1099-B. A disposition includes any disposition of
the investment (whether or not the disposition is for
consideration), including by gift or inheritance.
Report each disposition on a separate Form 1099-B,
regardless of how many dispositions any one person
has made in the calendar year. The reporting Exceptions
under Brokers, and the reporting Exceptions under Barter
Exchanges, later, do not apply to dispositions of interests
in a QOF. If you are a QOF that is not a broker or
barter exchange and do not know that a broker or barter
exchange reported a disposition of an interest in the QOF,
then complete the following on the form in the manner
instructed for the respective items and boxes.
• Box 1a. For interests in the QOF, enter the appropriate
descriptions. For example, for stock, enter the number of

Instructions for Form 1099-B (2027) Catalog Number 64171A
Department of the Treasury Internal Revenue Service www.irs.gov

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Reminders

Information Returns Intake System (IRIS). The IRS
has developed IRIS, an online portal for e-filing
information returns. Go to IRS.gov/IRIS for more
information.

shares or units; for partnerships, enter the percentage of
investment.
• Box 1b. Enter the acquisition date of any interest in the
QOF, if known.
• Box 1c. Enter the date of disposition of any interest in
the QOF.
• Box 1d. Enter the gross cash proceeds from the
disposition of any interest in the QOF, if known.
• Box 3. Check the “QOF” box for reporting the
disposition of an interest in the QOF.
QOFs must furnish a statement to the person who
disposed of the interest in the QOF investment. For
additional information on furnishing statements, see part
M in the current Pub. 1099.
If you are a broker or barter exchange, including
a QOF that is a broker or barter exchange, complete
Form 1099-B as usual for all dispositions of interests
in QOFs. Follow the specific instructions for brokers or
barter exchanges (for example, the reporting of basis for
a QOF investment that is a covered security). Complete
all boxes as appropriate, depending on the nature of the
interest disposed. For example, if the QOF investment is
stock, you must complete box 1e to report cost or other
basis. Also, you must check the QOF box in box 3 for all
dispositions of QOF investments.

Brokers

A broker is any person who, in the ordinary course of a
trade or business, stands ready to effect sales to be made
by others. A broker may include a U.S. or foreign person
or a governmental unit and any subsidiary agency.
You are considered a broker if:

• You are an obligor that regularly issues and retires its

own debt obligations, or
• You are a corporation that regularly redeems its own
stock.
However, for a sale, redemption, or retirement at an
office outside the United States, only a U.S. payer or
U.S. intermediary is a broker. See Regulations sections
1.6045-1(g)(1) and 1.6049-5(c)(5).
You are not considered a broker if:

• You are a corporation that purchases odd-lot shares

from its stockholders on an irregular basis (unless facts
indicate otherwise),
• You manage a farm for someone else, or
• You are an international organization that redeems or
retires its own debt. See Regulations section 1.6045-1(a)
(1).

Reporting
How many transactions to report on each form.
Report each transaction (other than regulated futures,
foreign currency, or Section 1256 option contracts) on
a separate Form 1099-B. Report transactions involving
regulated futures, foreign currency, or Section 1256 option
contracts on an aggregate basis. However, you may report
these contracts on an aggregate basis on a separate
Form 1099-B for each type of contract, including separate
forms for digital asset and non-digital asset contracts
of the same type. For example, you must report all
Section 1256 contracts, whether they are digital assets
or non-digital assets, on at least one Form 1099-B, but
2

you can choose to report digital asset Section 1256 option
contracts separately from non-digital asset Section 1256
option contracts.
How many forms to file for each transaction. Report
sales of each of the following types of securities on a
separate Form 1099-B, even if all three types were sold in
a single transaction.
• Covered securities (defined later) with short term gain
or loss.
• Covered securities with long-term gain or loss.
• Noncovered securities (securities that are not covered
securities) if you choose to check box 5 when reporting
their sale.
Closing transactions. In the case of an option, a
regulated futures contract, a securities futures contract,
or a forward contract, a sale includes any closing
transaction. A closing transaction is a lapse, an expiration,
a settlement, an abandonment, or other termination of a
position (which includes a right or an obligation under a
forward contract, a regulated futures contract, a securities
futures contract, or an option).
Example. If an option is a covered security and the
option has a zero basis at the time of the closing
transaction, enter -0- in box 1e.
Substitute statements. Brokers that use substitute
statements may be able to report customer transactions
(digital asset sales (Form 1099-DA), securities sales
(Form 1099-B), interest earned (Forms 1099-INT and
1099-OID), dividends (Form 1099-DIV), and foreign taxes
paid (Forms 1099-DIV and 1099-INT)) for the year on a
single substitute statement. For details, see Pub. 1179,
General Rules and Specifications for Substitute Forms
1096, 1098, 1099, 5498, and Certain Other Information
Returns, at IRS.gov/Pub1179, which provides the rules for
substitute forms.
Additional information required for covered securi­
ties. For each sale of a covered security for which you
are required to file Form 1099-B, report the date of
acquisition (box 1b); whether the gain or loss is short
term or long term, and whether any portion of the gain
or loss is ordinary (box 2); cost or other basis (box 1e);
the amount of accrued market discount (box 1f); and the
loss disallowed due to a wash sale (box 1g). When selling
a noncovered security and reporting it on a separate Form
1099-B, you may check box 5 and leave boxes 1b, 1e, 1f,
1g, and 2 blank. If you check box 5, you may choose to
report the information requested in boxes 1b, 1e, 1f, 1g,
and 2 and will not be subject to penalties under section
6721 or 6722 for failure to report this information correctly.
Example. Your customer Arlo bought shares of stock
in ABC Corporation in April 2010, April 2026, and August
2026. The shares of stock bought in 2026 are covered
securities. The shares of stock bought in April 2010 are
noncovered securities. In June 2027, Arlo sells all of the
stock in a single transaction. Even though the stock was
sold in a single transaction, you must report the sale of the
covered securities on two separate 2027 Forms 1099-B
(one for the securities bought in April 2026 with long term
gain or loss and one for the securities bought in August
2026 with short term gain or loss). You must report the
sale of the noncovered securities on a third Form 1099-B
Instructions for Form 1099-B (2027)

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or on the Form 1099-B reporting the sale of the covered
securities bought in April 2026 (reporting long term gain
or loss). You may check box 5 if reporting the noncovered
securities on a third Form 1099-B. If you check box 5, you
may leave boxes 1b, 1e, 1f, 1g, and 2 blank or you may
complete boxes 1b, 1e, 1f (if applicable), 1g (if applicable),
and 2 and not be subject to penalties under section 6721
or 6722 for failing to report this information correctly.

2027 but the short sale was not closed by the end of 2027,
file a 2027 Form 1099-B. Report the tax withheld in box 4.
In box 1a, enter a brief description of the transaction (for
example, “$5,000 short sale of 100 shares of ABC stock
not closed”). Leave the other numbered boxes blank. File
a final Form 1099-B for the year the short sale is closed,
as described above, but do not include the 2027 tax
withheld on that Form 1099-B.

Short sales of securities. Do not report a short sale
entered into after 2010 until the year a customer delivers a
security to satisfy the short sale obligation, unless there
is backup withholding. See Backup withholding, later.
Disregard sections 1259 (constructive sales) and 1233(h)
(short sales of property that becomes worthless). Report
the short sale on a single Form 1099-B unless:
• You are reporting both short term and long term gain
or loss from a short sale closed by delivery of covered
securities (as explained earlier under How many forms to
file for each transaction),
• The securities delivered to close the short sale include
both covered securities and noncovered securities (as
explained earlier under How many forms to file for each
transaction), or
• There was backup withholding and other conditions
apply (see Backup withholding, later).
Report on Form 1099-B the relevant information about the
security sold to open the short sale, with the exceptions
described in the following paragraphs.
In box 1a, report the quantity of the security delivered to
close the short sale.
In box 1b, report the acquisition date of the security
delivered to close the short sale.
In box 1c, report the date the security was delivered to
close the short sale.
In box 1e, report the adjusted basis of the security
delivered to close the short sale.
In box 2, report whether any gain or loss on the closing
of the short sale is short term or long term based on the
acquisition date of the security delivered to close the short
sale. Apply section 1233(d), if applicable.
If the short sale is closed by delivery of a noncovered
security, you may check box 5. In this case, you do not
have to complete boxes 1b, 1e, 1f, 1g, and 2. However,
if you choose to report the information in those boxes
and check box 5, you will not be subject to the penalties
under sections 6721 and 6722 for failure to report that
information correctly.
If a short sale obligation is satisfied by delivery
of a security transferred into a customer’s account
accompanied by a transfer statement indicating the
security was borrowed, see Regulations section
1.6045-1(c)(3)(xi)(C).
In the case of a short sale, you can take backup
withholding either:
• From the gross proceeds when the short sale is
opened, or
• From any gain when the short sale is closed if you
expect to be able to determine the gain on the short sale
at that time.
Backup withholding. If backup withholding was taken
from the gross proceeds when a short sale was opened in

Widely held fixed investment trusts (WHFITs).
Trustees and middlemen must report the amount of
non-pro rata partial principal payments (as defined in
Regulations section 1.671-5(b)(13)), trust sales proceeds
(as defined in Regulations section 1.671-5(b)(21)),
redemption asset proceeds (as defined in Regulations
section 1.671-5(b)(14)), redemption proceeds (as defined
in Regulations section 1.671-5(b)(15)), the sales asset
proceeds (as defined in Regulations section 1.671-5(b)
(17)), and the sales proceeds (as defined in Regulations
section 1.671-5(b)(18)) that are attributable to a trust
interest holder (TIH) for the calendar year on Form
1099-B.
Report a disposition of digital assets held by the
WHFIT. You may choose to report this disposition of digital
assets on either Form 1099-B or Form 1099-DA. See
Sales of digital assets, later.
To determine the amount of each item of proceeds to
be reported on Form 1099-B, see, generally, Regulations
section 1.671-5. If the trustee provides WHFIT information
using the safe harbor rules in Regulations section
1.671-5(f)(1) or (g)(1), the trustee or intermediary must
determine the amounts reported on Forms 1099 under
Regulations section 1.671-5(f)(2) or (g)(2), as appropriate.
Check box 5 and leave boxes 1b, 1e, 1f, 1g, and 2
blank if:
• You are a broker reporting the sale of a security held by
a WHFIT to the WHFIT trustee; or
• You are a trustee or intermediary of a WHFIT
reporting non-pro rata partial principal payments, trust
sale proceeds, redemption asset proceeds, redemption
proceeds, sales asset proceeds, and sales proceeds to a
TIH.
Requirement to furnish a tax information statement
to TIH. A tax information statement that includes the
information provided to the IRS on Form 1099-B, as well
as additional information identified in Regulations section
1.671-5(e), must be provided to TIHs. The written tax
information statement furnished to the TIH for 2027 is due
on or before March 15, 2028. The amount of an item
of a trust expense that is attributable to a TIH must be
included on the tax information statement provided to the
TIH and is not required to be included in box 5 on the
Form 1099-DIV. See Regulations section 1.671-5(e) for
a complete list of the items of information that must be
included in the statement to the TIH.

Instructions for Form 1099-B (2027)

Acquisition of control or substantial change in cap­
ital structure. File Form 1099-B for each customer
who received cash, stock, or other property from a
corporation that you know, or have reason to know
based on readily available information, must recognize
gain under section 367(a) from the transfer of property
to a foreign corporation in an acquisition of control or
substantial change in capital structure reportable on Form
3

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TREASURY/IRS AND OMB USE ONLY DRAFT
8806. Readily available information includes information
from a clearing organization, such as the Depository
Trust Company (DTC), or from information published on
IRS.gov.

You are not required to file a second Form 1099-B for
a customer who received only cash for stock acquired in
an acquisition of control if you report the cash as proceeds
from a sale on another Form 1099-B. You are also not
required to file Form 1099-B for a customer who is an
exempt recipient (under Regulations section 1.6045-1(c)
(3)(i) or 1.6043-4(b)(5)). For a list of exempt recipients,
see the current Instructions for Form 1099-CAP.
Enter in box 1d the aggregate amount of cash and the
fair market value (FMV) of any stock and other property
received in exchange for stock held in your custody. Also,
check box 7.
In box 1a, show the corporation’s name and the number
of shares of the corporation’s stock you held that were
exchanged. Also, enter the class or classes of stock (for
example, preferred, common, etc.) that were exchanged,
whether for cash or other property. Abbreviate the class
to fit the entry. For example, enter “C” for common stock,
“P” for preferred, or “O” for other. Also, abbreviate any
subclasses.
Leave the other numbered boxes and the CUSIP
number box blank unless you are required to file a Form
1099-B to report proceeds you paid to the customer from
the acquisition of control or substantial change in capital
structure and you choose to file and furnish one Form
1099-B for amounts reported under both Regulations
sections 1.6045-1 and 1.6045-3. If you choose to combine
the reporting for both, do not combine other transactions
the customer may have had during the year with the
reporting of the acquisition of control or change in capital
structure. Also, in box 1e, report the total basis of the
customer's stock. Do not enter an amount in box 1e that is
greater than the amount entered in box 1d.
Cash on delivery account. For a sale of securities
through a “cash on delivery” or similar account, only
the broker that receives the gross proceeds from the
sale against delivery of the securities sold is required to
report the sale. However, if such broker’s customer is a
“second-party broker” that is an exempt recipient, only the
second-party broker is required to report the sale.
Foreign currency. If the purchase amount or sales
proceeds are paid in foreign currency, you must report
the amount of foreign currency in U.S. dollars. Generally,
you must determine the reportable amount (other than
amounts representing accrued interest or original issue
discount) as of the date you receive, credit, or make
the payment, whichever applies, at the spot rate or by
following a reasonable spot rate convention, such as a
month-end spot rate or a monthly average spot rate.
When reporting the purchase or sale of a security
traded on an established securities market, you must
determine the U.S. dollar amounts to be reported (other
than amounts representing accrued interest or original
issue discount) as of the settlement date, at the spot rate
4

Substitute payments. Do not report substitute payments
in lieu of dividends and tax-exempt interest on Form
1099-B. Instead, report these payments in box 8 of
Form 1099-MISC, Miscellaneous Information. See section
6045(d) and the Instructions for Forms 1099-MISC and
1099-NEC.
Stock options granted in connection with the per­
formance of services. If an employee, former employee,
or other service provider, in connection with the
performance of services, obtains substantially vested
shares of stock from the exercise of a stock option and
sells that stock through a broker on the same day, then the
broker may not be required to report the sale on Form
1099-B. For details, see Revenue Procedure 2002-50,
which is on page 173 of Internal Revenue Bulletin 2002-29
at IRS.gov/pub/irs-irbs/irb02-29.pdf.
Partnership sale. Form 8308, Report of a Sale or
Exchange of Certain Partnership Interests, does not have
to be filed if, under section 6045, a return is required to
be filed by a broker on Form 1099-B for the transfer of the
partnership interest.
Exceptions. Brokers are not required to file but may file
Form 1099-B for the following.
1. Sales for exempt recipients, including the following.
a. Charitable organizations.
b. IRAs.
c. Archer MSAs and health savings accounts
(HSAs).
d. The United States or any state or a political
subdivision of the United States or any state.
e. Corporations. However, see Identifying a
corporation, later, for instructions about how to know
whether a customer is a corporation for this purpose.
Also, you must file Form 1099-B for the sale of a covered
security (defined later) by an S corporation if the S
corporation acquired the covered security after 2011.
2. Sales initiated by dealers in securities and financial
institutions.
3. Sales by custodians and trustees, provided the sale
is reported on a properly filed Form 1041, U.S. Income Tax
Return for Estates and Trusts.
4. Sales of shares in a regulated investment company
that is a money market fund.
5. Obligor payments on the following.
a. Nontransferable obligations, such as savings
bonds or CDs.
b. Obligations for which gross proceeds are
reported on other Forms 1099, such as stripped coupons
issued before July 1, 1982.
Instructions for Form 1099-B (2027)

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Note: For more information, see Form 8806, available at
IRS.gov/Form8806.

or by following a reasonable spot rate convention. See
Regulations section 1.6045-1(d)(8).
Generally, payments of foreign currency amounts
representing accrued interest or original issue discount
must be translated using the average rate for the interest
accrual period, although certain customers may elect to
translate such amounts using the spot rate on the last day
of the interest accrual period. See Regulations sections
1.988-2(b)(2) and 1.6045-1(n)(4)(v).

c. Callable demand obligations issued before
January 1, 2014, that have no premium or discount.
6. Sales of foreign currency unless under a forward or
regulated futures contract that requires delivery of foreign
currency.
7. Sales of fractional shares of stock if gross proceeds
are less than $20.
8. Retirements of book-entry or registered form
obligations issued before January 1, 2014, if no interim
transfers have occurred.
9. Sales for exempt foreign persons as defined in
Regulations section 1.6045-1(g)(1).
10. Sales of Commodity Credit Corporation certificates.
11. Spot or forward sales of agricultural commodities.
See Spot or forward sales of agricultural commodities,
later.
12. Some sales of precious metals. See Sales of
precious metals, later.
13. Grants or purchases of options, purchases due to
exercises of call options, or entering into contracts that
require delivery of personal property or an interest therein.
14. Sales (including retirements) of short-term
obligations issued on or after January 1, 2014. However, a
broker may be required to file a Form 1099-INT for interest
or original issue discount on a short term obligation.
Identifying a corporation. For sales of covered
securities (defined later) that were acquired after 2011,
you cannot rely on Regulations section 1.6049-4(c)(1)(ii)
(A) to tell whether a customer is a corporation. However,
for sales of all securities, you can treat a customer as an
exempt recipient if one of the following statements is true.
1. The name of the customer contains the term
“insurance company,” “indemnity company,” “reinsurance
company,” or “assurance company.”
2. The name of the customer indicates it is an entity
listed as a per se corporation under Regulations section
301.7701-2(b)(8)(i).
3. You receive a properly completed exemption
certificate on Form W-9 that shows the customer is not
an S corporation.
4. You receive a Form W-8 that includes a certification
that the person whose name is on the form is a foreign
corporation.
Spot or forward sales of agricultural commodities.
Agricultural commodities include grain, feed, livestock,
meat, oil seed, timber, and fiber. A spot sale is a sale that
results in almost immediate delivery of a commodity. A
forward sale is a sale under a forward contract. However,
sales and exchanges of timber for lump-sum payments
must be reported on Form 1099-S, Proceeds From Real
Estate Transactions.
Report sales of agricultural commodities under a
regulated futures contract, sales of derivative interests
in agricultural commodities, and sales of receipts
for agricultural commodities issued by a designated
warehouse on Form 1099-B. A designated warehouse
is a warehouse, depository, or other similar entity
designated by a commodity exchange in which or out
of which a particular type of agricultural commodity is
Instructions for Form 1099-B (2027)

deliverable to satisfy a regulated futures contract. Sales
of warehouse receipts issued by any other warehouse are
not reportable.
Sales of precious metals. A sale of a precious metal
(gold, silver, platinum, or palladium) in any form for which
the Commodity Futures Trading Commission (CFTC) has
not approved trading by regulated futures contract (RFC)
is not reportable. Further, even if the sale is of a precious
metal in a form for which the CFTC has approved trading
by RFC, the sale is not reportable if the quantity, by weight
or by number of items, is less than the minimum required
quantity to satisfy a CFTC-approved RFC.
For example, a broker selling a single gold coin does
not need to file Form 1099-B even if the coin is of such
form and quality that it could be delivered to satisfy a
CFTC-approved RFC if all CFTC-approved contracts for
gold coins currently call for delivery of at least 25 coins.
Sales of precious metals for a single customer during
a 24-hour period must be aggregated and treated as a
single sale to determine if this exception applies. This
exception does not apply if the broker knows or has
reason to know that a customer, either alone or with a
related person, is engaging in sales to avoid information
reporting.
Sales of digital assets. A digital asset is any
digital representation of value that is recorded on
a cryptographically secured distributed ledger without
regard to whether each individual transaction involving
that digital asset is actually recorded on that distributed
ledger and that is not cash (that is, U.S. dollars or any
convertible foreign currency issued by a government or
central bank).
For sales of digital assets, complete Form 1099-DA.
For sales of digital assets that are also securities
for which the Form 1099-B would be required (dual
classification asset), you should generally file Form
1099-DA and not Form 1099-B. There are three
exceptions to the requirement to report a sale of a dual
classification asset on a Form 1099-DA. See Regulations
section 1.6045-1(c)(8).
1. For transactions involving dual classification assets
that are digital assets solely because their sales are
cleared or settled on a limited access regulated network,
as described in Regulations section 1.6045-1(c)(8)(iii)(B),
you should file Form 1099-B and not Form 1099-DA.
2. For transactions involving dual classification assets
that constitute Section 1256 contracts, including regulated
futures contracts or Section 1256 option contracts on
digital assets, you should report the Section 1256 contract
transactions on an aggregate basis on Form 1099-B.
However, in the event delivery of the underlying digital
asset is made with respect to a Section 1256 contract,
which includes a regulated futures contract, a Section
1256 nonequity option contract, or a Section 1256 foreign
currency contract, report the delivery of the underlying
digital asset as a sale on Form 1099-DA.
3. For transactions involving dual classification assets
that are shares in money market funds, you should not file
Form 1099-DA and you are not required to file but may file
Form 1099-B.
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TREASURY/IRS AND OMB USE ONLY DRAFT
For rules related to sales of digital assets for exempt
foreign persons, see Regulations section 1.6045-1(g)(4).
Dual classification assets that are tokenized securi­
ties. For transactions involving dual classification assets
that are tokenized securities, you should file Form
1099-DA and not Form 1099-B. A tokenized security is
a dual classification asset that provides the holder with an
interest in another asset that is a security that is otherwise
subject to reporting on Form 1099-B. Additionally, a
tokenized security is an asset the offer and sale of
which is registered with the U.S. Securities and Exchange
Commission other than an asset treated as a security for
securities law purposes solely as an investment contract.
See Regulations section 1.6045-1(c)(8)(i)(D).
Exemption certificate. A broker may require an exempt
recipient to file a properly completed Form W-9, Request
for Taxpayer Identification Number and Certification, or
similar form. A broker may treat an exempt recipient that
fails to do so as a recipient that is not exempt. See part J
in the current Pub. 1099 for more information.

Any person that transfers custody of a specified security
(defined later) to a broker after 2010 (after 2011 if the
stock is in a regulated investment company and after
2014 for certain debt instruments, options, and securities
futures contracts) must give the broker a written transfer
statement within 15 days after the date of settlement for
the transfer.
The transferor must furnish a separate statement for
each security and if transferring custody of the same
security acquired on different dates or at different prices,
for each acquisition. However, a separate statement is not
required for:
• Noncovered securities, and
• Securities acquired more than 5 years before the
transfer for which basis is determined using an average
basis method.
These rules apply to:

• Any broker,
• Anyone that acts as a custodian of securities in the

ordinary course of a trade or business,
• Any issuer of securities,
• Any trustee or custodian of an individual retirement
plan, or
• Any agent of the above.
These rules do not apply to:

• The beneficial owner of a security or any agent

substituted for an undisclosed beneficial owner,
• Any governmental unit or any agency or instrumentality
of a governmental unit holding escheated securities, or
• Any organization that holds and transfers obligations
among members as a service to its members.
Information required. Each transfer statement must
include:
• Date the statement is furnished;
• Name, address, and telephone number of the person
furnishing the statement;
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Instructions for Form 1099-B (2027)

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Transfer Statement

• Name, address, and telephone number of the broker
receiving custody of the security;
• Name of the customer(s) for the account from which the
security is transferred;
• Account number for the transferring account and, if
different, the receiving account;
• CUSIP or other security identifier number of the
transferred security;
• Number of shares or units;
• Type of security (such as stock, debt instrument, or
option);
• Date the transfer was initiated and settlement date of
the transfer (if known); and
• The security's total adjusted basis, original acquisition
date, and, if applicable, the holding period adjustment
under section 1091.
For a debt instrument, the following additional
information is required.
• A description of the payment terms used by the broker
to compute any basis adjustments under Regulations
section 1.6045-1(n).
• The issue price.
• The issue date, if different from the original acquisition
date.
• The adjusted issue price as of the transfer date.
• The initial basis.
• Any market discount that has accrued as of the transfer
date.
• Any bond premium that has been amortized as of the
transfer date.
• Any acquisition premium that has been amortized as of
the transfer date.
• Whether the transferring broker has computed any
of the information by taking into account one or more
elections under Regulations section 1.6045-1(n).
• The last date on or before the transfer date that the
broker made an adjustment for a particular item relating to
a debt instrument transferred on or after January 1, 2016.
For all option transfers, include the following.
• The date of grant or acquisition of the option, the
amount of the premium paid or received, and any other
information required to fully describe the option.
• For the transfer of a Section 1256 option on or after
January 1, 2016, also provide the original basis of the
option and the FMV of the option as of the end of the prior
calendar year.
The adjusted basis, original acquisition date, holding
period adjustment, and the additional information for
a debt instrument or option described above are not
required if the transfer statement identifies the security as
a noncovered security.
If the names of the customer(s) for the transferring
and receiving accounts are not the same, the transfer
statement must also include the name of the customer(s)
for the account to which the security is transferred.
However, if the transfer is to or from an account for which
a broker, custodian, or other person subject to the transfer
reporting rules is the customer, the transfer statement
must treat the beneficial owner or, if applicable, an agent
substituted by an undisclosed beneficial owner as the
customer for both accounts, and the broker receiving
the transfer statement should treat the security as held

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Effect on Form 1099-B and other transfer statements.
In preparing Form 1099-B or a transfer statement for
securities you transfer to someone else, you must take
into account all the information (other than securities
classifications) reported on a transfer statement you
receive, unless the statement is incomplete or you know
it is incorrect. If you do not receive a required transfer
statement by the due date, you must request one from
the transferor. If a complete transfer statement is not
furnished, either after you requested one or because
no transfer statement was required, you may treat
the security as noncovered. However, you must file a
corrected Form 1099-B within 30 days of receiving a
transfer statement indicating that the security is a covered
security. But you do not have to file a corrected Form
1099-B if you receive the statement more than 3 years
after you filed the original Form 1099-B. You must also
furnish a corrected transfer statement within 15 days of
receiving a transfer statement indicating that a security
is a covered security if you transferred the security
transferred to you. But you do not have to furnish a
corrected transfer statement if you receive the transfer
statement more than 18 months after you furnished your
transfer statement.
More information. For more information about transfer
statements, including definitions, exceptions, rules for
gift transfers, transfers from a decedent's estate, and
transfers of borrowed securities, see Regulations section
1.6045A-1.

Issuer Returns for Actions Affecting Basis
An issuer of a specified security (defined later) that takes
an organizational action that affects the basis of the
security must file an issuer return on Form 8937, Report of
Organizational Actions Affecting Basis of Securities. This
applies to organizational actions after 2010 (after 2011 if
the stock is in a regulated investment company and after
2013 for debt instruments, options, and securities futures
contracts). The return is due on or before the 45th day
following the organizational action or, if earlier, January 15
of the next calendar year.
An issuer is not required to file this return if, by the
due date, the issuer posts the return with the required
information in a readily accessible format in an area of its
primary public website dedicated to this purpose and, for
10 years, keeps the return accessible to the public on its
Instructions for Form 1099-B (2027)

primary public website or the primary public website of
any successor organization. An issuer may electronically
sign a return that is publicly reported on the issuer’s
public website. The electronic signature must identify the
individual who is signing the return.
Effect on Form 1099-B and transfer statements. In
preparing Form 1099-B or a transfer statement, you must
take into account all the information reported by the issuer
of the security on a statement that the issuer furnishes
to you or is deemed to furnish to you, unless the issuer
statement is incomplete or you know it is incorrect. Take
into account only those organizational actions taken by
the issuer of the security during the period you held
custody of the security (beginning with the date on which
you received a transferred security). If you receive or are
deemed to receive an issuer statement after filing Form
1099-B, you must file a corrected Form 1099-B within
30 days of receiving the issuer statement. But you do
not have to file a corrected Form 1099-B if you receive
the issuer statement more than 3 years after you filed
the original Form 1099-B. If you receive or are deemed
to receive an issuer statement after furnishing a transfer
statement for a covered security, you must furnish a
corrected transfer statement within 15 days of receiving
the issuer statement. But you do not have to furnish
a corrected transfer statement if you receive the issuer
statement more than 18 months after you furnished the
original transfer statement.
More information. For more information, see Form 8937
and its instructions, and Regulations section 1.6045B-1.

Barter Exchanges

A barter exchange is any person or organization with
members or clients that contract with each other (or with
the barter exchange) to jointly trade or barter property or
services. The term does not include arrangements that
provide solely for the informal exchange of similar services
on a noncommercial basis. Persons who do not contract
with a barter exchange but who trade services do not
file Form 1099-B. However, they may have to file Form
1099-MISC.
Transactional/aggregate reporting. Barter exchanges
involving noncorporate members or clients must
report each transaction on a separate Form 1099-B.
Transactions involving corporate members or clients of a
barter exchange may be reported on an aggregate basis.
Member information. In the recipient area of Form
1099-B, enter information about the member or client that
provided the property or services in the exchange.
Exceptions. Barter exchanges are not required to file
Form 1099-B for:
1. Exchanges through a barter exchange having fewer
than 100 transactions during the year,
2. Exempt foreign persons, as defined in Regulations
section 1.6045-1(g)(1), or
3. Exchanges involving property or services with an
FMV of less than $1.00.

7

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for the beneficial owner or the beneficial owner’s agent
regardless of the customer listed for the broker’s account.
The person furnishing and the broker receiving the
transfer statement can agree to combine the information
in any format or to use a code in place of one or
more required items. The transferor should determine
the adjusted basis and other information to be reported
as explained in these instructions. If the basis of the
transferred security is determined using an average basis
method, any securities acquired more than 5 years prior
to the transfer may be reported on a single statement on
which the original acquisition date is reported as “various,”
but only if the other information reported applies to all the
securities.

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Statements to Recipients
If you are required to file Form 1099-B, you must provide
a statement to the recipient. For more information about
the requirement to furnish a statement to the recipient, see
part M in the current Pub. 1099.
Truncating recipient’s taxpayer identification number
(TIN) on payee statements. Pursuant to Regulations
section 301.6109-4, all filers of this form may truncate a
recipient’s TIN (social security number (SSN), individual
taxpayer identification number (ITIN), adoption taxpayer
identification number (ATIN), or employer identification
number (EIN)) on payee statements. Truncation is not
allowed on any documents the filer files with the IRS. A
filer’s TIN may not be truncated on any form. See part J in
the current Pub. 1099.

Applicable Checkbox on Form 8949

CUSIP Number

Box 1a. Description of Property

For transactional reporting by brokers, enter the
CUSIP (Committee on Uniform Security Identification
Procedures) number of the security or other applicable
identifying number.

For stock and debt instruments, enter the issuer’s name
and the number of shares or units you held that were
exchanged. For stock, also enter the class or classes of
stock (for example, preferred, common, etc.) that were
exchanged, whether for cash or other property. Abbreviate
the class to fit the entry. For example, enter “C” for
common stock, “P” for preferred, or “O” for other. Also,
abbreviate any subclasses. For a non-Section 1256 option
or securities futures contract, enter the name of the
underlier and the number of shares or units covered by
the contract.

For a list of country codes, go to IRS.gov/CountryCodes.

2nd TIN Not. Checkbox
You may enter an “X” in this box if you were notified by the
IRS twice within 3 calendar years that the payee provided
an incorrect TIN. If you mark this box, the IRS will not send
you any further notices about this account.
However, if you received both IRS notices in the same
year, or if you received them in different years but they
both related to information returns filed for the same year,
do not check the box at this time. For purposes of the
two-notices-in-3-years rule, you are considered to have
received one notice and you are not required to send a
second “B” notice to the taxpayer on receipt of the second
notice. See part N in the current Pub. 1099 for more
information. Also, see Revenue Procedure 2014-43.

Account Number
The account number is required if you have multiple
accounts for a recipient for whom you are filing more than
one Form 1099-B. The account number is also required if
you check the “FATCA filing requirement” checkbox. See
FATCA Filing Requirement Checkbox below. Additionally,
the IRS encourages you to designate an account number
for all Forms 1099-B that you file. See part L in the current
Pub. 1099.

FATCA Filing Requirement Checkbox

For bartering transactions, describe the service or
property provided.
For regulated futures contracts and forward contracts,
enter “RFC,” “digital asset RFC,” or other appropriate
description.

Check the box if you are a Foreign Financial Institution
(FFI) reporting payments to a U.S. account pursuant to
an election described in Regulations section 1.1471-4(d)
8

Instructions for Form 1099-B (2027)

DRAFT

For more information on the TIN Matching System
offered by the IRS, see the current Pub. 1099.

Use this box to enter a one-letter code that will assist the
recipient in reporting the transaction on Form 8949 and/or
Schedule D (Form 1040). Use the code below that applies
to how the recipient will report the transaction.
Code A. This code indicates a short term transaction
for which the cost or other basis is being reported to
the IRS. Use this code to report a transaction that the
recipient will report on Schedule D (Form 1040), line 1a, or
on Form 8949 with box A checked with totals being carried
to Schedule D (Form 1040), line 1b.
Code B. This code indicates a short term transaction
for which the cost or other basis is not being reported
to the IRS. Use this code to report a transaction that the
recipient will report on Form 8949 with box B checked with
totals being carried to Schedule D (Form 1040), line 2.
Code D. This code indicates a long term transaction for
which the cost or other basis is being reported to the IRS.
Use this code to report a transaction that the recipient
will report on Schedule D (Form 1040), line 8a, or on
Form 8949 with box D checked with totals being carried to
Schedule D (Form 1040), line 8b.
Code E. This code indicates a long term transaction
for which the cost or other basis is not being reported
to the IRS. Use this code to report a transaction that the
recipient will report on Form 8949 with box E checked,
with totals being carried to Schedule D (Form 1040),
line 9.
Code X. Use this code to report a transaction if you
cannot determine whether the recipient should check box
B or box E on Form 8949 because the holding period is
unknown.

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(5)(i)(A). In addition, check the box if you are a U.S. payer
that is reporting on Form 1099-B as part of satisfying your
requirement to report with respect to a U.S. account for
chapter 4 purposes, as described in Regulations section
1.1471-4(d)(2)(iii)(A).

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For Section 1256 option contracts, enter “Section
1256 option,” “digital asset Section 1256 option,” or other
appropriate description.

calendar year following the year of the sale. You may
extend the January 15 deadline but not beyond the due
date for filing Form 1099-B.

If you are reporting more than one type of Section
1256 contract on a single form, please describe the types
of contracts being reported. For example, enter “Section
1256 options and digital asset Section 1256 options.”

Do not include any accrued qualified stated interest
on bonds sold between payment dates (or on a payment
date) in this box. Instead, report this accrued interest on
Form 1099-INT.

See Acquisition of control or substantial change in
capital structure, earlier, for the information to enter in
box 1a for that type of transaction.

For reporting an acquisition of control or substantial
change in capital structure, see Acquisition of control or
substantial change in capital structure, earlier.

Box 1b. Date Acquired

Box 1e. Cost or Other Basis

Enter the acquisition date of any securities sold. Leave
this box blank if:
• The securities sold were acquired on a variety of dates,
or
• You check box 5 and do not choose to complete box 1b.
For short sales, see Short sales of securities, earlier.

For broker transactions, enter the trade date of the sale or
exchange. For short sales, see Short sales of securities,
earlier. For barter exchanges, enter the date that cash,
property, a credit, or scrip is actually or constructively
received.

Box 1d. Proceeds
Enter the gross cash proceeds from all dispositions
(including short sales) of securities, commodities, options,
securities futures contracts, or forward contracts. Show
a loss, such as one from a closing transaction on a
written option or forward contract, as a negative amount
by enclosing it in parentheses.
You must reduce the proceeds by commissions and
transfer taxes related to the sale. For securities sold
because of the exercise of an option granted or acquired
before 2014, you may but are not required to take into
account option premiums in determining gross proceeds
if that is consistent with your books. For securities sold
because of the exercise of an option granted after 2013
or for the treatment of an option granted or acquired after
2013, see Regulations section 1.6045-1(m) for details.
If you reduce gross proceeds by option premiums,
check the second box in box 6. Otherwise, check the first
box.
Do not include amounts shown in boxes 8 through 11.
If identical stock is sold at separate times on the
same calendar day by a single trade order and a single
confirmation is given that reports to the customer an
aggregate price or an average price per share, you can
determine gross proceeds by averaging the proceeds
for each share. However, do not do this if the customer
notifies you in writing of an intent to determine the
proceeds from the sale by the actual proceeds per share
and you receive that notification by January 15 of the
Instructions for Form 1099-B (2027)

Covered security. A covered security is any of the
following.
• Stock acquired for cash in an account after 2010 except
stock for which the average basis method is available.
• Stock for which the average basis method is available
and that is acquired for cash in an account after 2011.
• A specified security transferred to an account if the
broker or other custodian of the account receives a
transfer statement (explained earlier) reporting the
security as a covered security.
• Certain debt instruments or options that are specified
securities acquired for cash in an account after 2013. See
Regulations section 1.6045-1(a)(15)(i)(C) and (E).
• Certain debt instruments or options that are
specified securities acquired for cash in an account
after 2015. See Regulations sections 1.6045-1(a)(15)(i)
(D) and 1.6045-1(m)(2)(ii). This includes variable-rate
debt instruments; inflation-indexed debt instruments;
contingent payment debt instruments; convertible debt
instruments; options on debt instruments with payments
denominated in or determined by reference to a currency
other than the U.S. dollar; and options issued as part of
investment units.
• A securities futures contract entered into in an account
after 2013.
• A security acquired due to a stock dividend, stock
split, reorganization, redemption, stock conversion,
recapitalization, corporate division, or other similar action,
if the basis of the acquired security is determined from the
basis of a covered security.
Specified security. A specified security is any of the
following.
• Any share of stock (or any interest treated as stock,
such as an American Depositary Receipt) in an entity
organized as or treated for federal tax purposes as a
corporation (foreign or domestic). For this purpose, a
security classified as stock by the issuer is treated as
stock. If the issuer has not classified the security, the
security is not treated as stock unless the broker knows
that the security is reasonably classified as stock under
general federal tax principles.
• Any debt instrument other than a debt instrument
subject to Section 1272(a)(6) (certain interests in or
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Box 1c. Date Sold or Disposed

Enter the adjusted basis of any securities sold unless the
security is not a covered security and you check box 5.
If you check box 5 and are not reporting basis, leave
box 1e blank. Enter -0- in box 1e only if the securities sold
actually had a basis of zero.

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Noncovered security. A noncovered security is any
security that is not a covered security.
The following securities are not covered securities.
• Stock acquired in 2011 that was transferred in 2011 to a
dividend reinvestment plan that meets the requirements of
Regulations section 1.1012-1(e)(6). However, a covered
security acquired in 2011 and transferred to a dividend
reinvestment plan after 2011 remains a covered security.
For purposes of this rule, stock is considered transferred
to a dividend reinvestment plan if it is held in a plan that is
not a dividend reinvestment plan and the plan amends its
plan documents to become a dividend reinvestment plan.
The stock is considered transferred as of the effective
date of the plan amendments.
• A security acquired due to a stock dividend, stock
split, reorganization, redemption, stock conversion,
recapitalization, corporate division, or other similar action
if the basis of the acquired security is determined from the
basis of a noncovered security.
• A security that, when acquired, did not have to be
reported on Form 1099-B because it was acquired from
an exempt recipient or an exempt foreign person, as
defined in Regulations section 1.6045-1(g)(1).
• A security for which reporting is required by Regulations
section 1.6049-5(d)(3)(ii) (certain securities owned by a
foreign intermediary or flow-through entity).
• A debt instrument if the terms of the debt instrument
are not reasonably available to the broker within 90
days of the date the debt instrument was acquired by
the customer and the debt instrument is either a debt
instrument issued by a non-U.S. issuer or a tax-exempt
obligation issued before January 1, 2014.
Identification of securities. If the customer has
acquired securities on different dates or at different prices
and sells less than the entire position in the security, report
the sale according to the customer’s adequate and timely
identification of the security to be sold. If no identification
is provided, report the sale in this order.
1. Any shares for which the acquisition date is
unknown.
2. The shares that were purchased or acquired first,
whether they are covered or noncovered securities.

10

Average basis method. Generally, the average basis
method is available for either of the following types of
stock if the customer leaves the shares with a custodian or
agent in an account and acquires identical shares of stock
at different prices in the account.
• Stock in most mutual funds or other regulated
investment companies.
• Stock acquired after 2010 in connection with a
dividend reinvestment plan that meets the requirements
of Regulations section 1.1012-1(e)(6).
Compute basis using the average basis method if:
• The customer elects that method; or
• You choose the average basis method as your default
method, and the customer does not give you any other
instructions.
Generally, determine the average basis of a share
of stock by dividing the aggregate basis of all shares
of identical stock in an account by the total number of
shares, regardless of holding period. However, for this
purpose, shares of stock in a dividend reinvestment plan
are not identical to shares of stock with the same CUSIP
number that are not in a dividend reinvestment plan. The
basis of each share of identical stock in the account is the
aggregate basis of all shares of that stock in the account
divided by the aggregate number of shares. Unless a
single-account election is in effect, you may not average
together the basis of identical stock held in separated
accounts that is sold, exchanged, or otherwise disposed
of after December 31, 2011. See Regulations section
1.1012-1(e) for details.
Adjusted basis. The adjusted basis begins with the
initial basis (defined later) as of the date the security is
acquired in an account.
In reporting the adjusted basis, take into account all
information, other than the classification of the security
(such as stock), reported on a transfer statement or issuer
return furnished to you or deemed furnished to you unless
that statement or return is incomplete or you know it is
incorrect. See Transfer Statement and Issuer Returns for
Actions Affecting Basis, earlier. Also, treat Form 2439
as an issuer return and take into account the effects of
undistributed capital gains reported to you on the form by
a regulated investment company or real estate investment
trust.
You are not required to consider other transactions,
elections, or events occurring outside the account when
determining basis.
You are also not required to apply section 1259
(constructive sales), section 475 (mark-to-market method
of accounting), section 1296 (mark-to-market method of
accounting for marketable stock in a passive foreign
investment company), and section 1092 (straddles).
For a debt instrument, see Regulations sections
1.6045-1(n)(7) and 1.6045-1(n)(11) for the rules to
determine adjusted basis for a debt instrument acquired
at a premium or discount.
Initial basis. If a customer paid cash for a security, the
initial basis is:
1. The total cash paid by the customer or credited
against the customer’s account for the security, plus
Instructions for Form 1099-B (2027)

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mortgages held by a real estate mortgage investment
conduit (REMIC), certain other debt instruments with
payments subject to acceleration, and pools of debt
instruments the yield on which may be affected by
prepayments), or any short term obligation. For this
purpose, a security classified as debt by the issuer is
treated as debt. If the issuer has not classified the
security, the security is not treated as debt unless the
broker knows that the security is reasonably classified
as debt under general federal tax principles or that the
instrument or position is treated as a debt instrument
under a specific provision of the Code.
• Any option on one or more specified securities (which
includes an index substantially all the components of
which are specified securities), any option on financial
attributes of specified securities, or a warrant or stock
right.
• Any securities futures contract.

2. The commissions and transfer taxes to buy the
security.

or sold, for example, fractional shares of stock resulting
from the merger that are only paid in cash.

You may but do not have to:
• Take option premiums into account to determine the
initial basis of securities acquired by exercising an option
granted or acquired before 2014, or
• Increase initial basis for income recognized upon
the exercise of a compensatory option or the
vesting or exercise of other equity-based compensation
arrangements granted or acquired before 2014.
You cannot increase initial basis for income recognized
upon the exercise of a compensatory option or the
vesting or exercise of other equity-based compensation
arrangements granted or acquired after 2013. For rules
related to options granted or acquired after 2013, see
Regulations section 1.6045-1(m).
You must report the basis of identical stock by
averaging the basis of each share if:
• The stock was purchased at separate times on the
same calendar day in executing a single trade order, and
• The broker executing the trade provides a single
confirmation to the customer that reports an aggregate
total price or an average price per share.
However, do not average the basis if the customer
timely notifies you in writing of an intent to determine basis
by the actual cost per share.
The initial basis of a security transferred to an account
is generally the basis reported on the transfer statement. If
a transfer statement indicates that the security is acquired
as a gift, you must apply the relevant basis rules for
property acquired by gift in determining the initial basis,
except you do not have to adjust the basis for gift tax.
Treat the initial basis as equal to the gross proceeds from
the sale if:
• Neither gain nor loss is recognized because of the basis
rules for gift property, or
• The initial basis depends on FMV as of the date of the
gift and you neither know nor can readily ascertain this
value.

Example. Your customer Adrian buys 100 shares of
covered stock in MNO Corporation for $5,000 in February
2027. MNO Corporation merges with PQR Corporation
in December 2027. The merger is taxable only to the
extent that boot is received. Adrian receives 100 shares
of PQR stock with a value of $4,700 and $800 cash boot
in exchange for Adrian’s MNO stock. Adrian’s resulting
basis in the PQR stock is $4,700. Report the $800 cash
boot in box 1d and report $300 in box 1e to reflect the
net reduction in basis from $5,000 (for the MNO stock) to
$4,700 (for the PQR stock).

Short sales. In the case of a short sale, report the
adjusted basis of the security delivered to close the short
sale.
Wash sales. If a customer acquired securities that
caused a loss from a sale of other securities to be
both nondeductible under section 1091 and the loss was
reported as a wash sale adjustment on a Form 1099-B
for the sale at a loss, increase the adjusted basis of the
acquired securities by the amount of the disallowed loss.
Corporate mergers. Report only the net reduction in
basis between stock exchanged and stock received when
reporting the payment of cash paid as part of a corporate
merger, reorganization, or similar event that is taxable only
to the extent that cash or property other than stock or
securities (“boot”) is received and for which no loss can
be recognized. Enter only the amount of the reduction
attributable to the amount reported in box 1d. Enter the
amount as a positive number. However, do not apply
this rule and instead report adjusted basis, as described
earlier, for any stock considered to have been redeemed

Instructions for Form 1099-B (2027)

Box 1f. Accrued Market Discount

Enter the amount of accrued market discount in box 1f.

Box 1g. Wash Sale Loss Disallowed
Wash sales. Report wash sale loss amount disallowed.
You must report any loss disallowed under section 1091
if both the sale and purchase transactions occur in the
same account with respect to covered securities with
the same CUSIP number. You are permitted but are not
required to report in box 1g all loss disallowed under
section 1091. For example, you may report a disallowed
loss even though a security is sold in one account and
repurchased in a different account. Increase the adjusted
basis of the acquired securities by the amount of the
disallowed loss reported in box 1g.
You also do not have to apply the wash sale rules if:
• The purchased security is transferred to another
account before the wash sale,
• The purchased security was purchased in another
account and later transferred into the account from which
securities were sold,
• The securities are treated as held in separate accounts,
or
• The customer has notified you in writing (including in an
electronic format) that they have made a valid and timely
mark-to-market election under section 475 and identify the
account from which the securities were sold as containing
only securities subject to the election.
For more details, see Regulations section 1.6045-1(d)
(6)(iii).
Example. Your customer Alex buys 100 shares for
$1,000 in September 2026. In October 2026, Alex sells
them for $600. Within 30 days of the sale, Alex buys
75 shares with the same CUSIP number in the same
account. Since Alex’s loss is $400 ($1,000 minus $600)
but the loss on 75 shares is disallowed, Alex’s disallowed
loss is $300. Report the $600 gross proceeds from the
sale in box 1d, $1,000 basis in box 1e, and $300 wash
sale loss disallowed in box 1g. The $300 in disallowed
loss is added to Alex’s basis in the newly purchased 75
shares.

Box 2. Type of Gain or Loss
Determine whether the gain or loss is short term or long
term under Section 1222, and whether any portion of the
gain or loss is ordinary. In making the determination, you
must do the following.
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• Consider any information reported on a transfer
statement.
• Consider any information reported on Form 8937.
• Apply the rules for stock acquired from a decedent.
• Apply the rules for stock acquired as a gift.
• If a customer acquired securities that caused a loss
from a sale of other securities to be both nondeductible
under section 1091 and reported in box 5 of a 2013 or
earlier Form 1099-B (or reported on a 2014 or 2015 Form
1099-B with code W in box 1f and an adjustment amount
in box 1g), use the rules in section 1223(3) to determine
the holding period of the acquired securities.
• In the case of a short sale, report whether any gain
or loss on the closing of the short sale is short term or
long term based on the acquisition date of the security
delivered to close the short sale. Apply the rule in section
1233(d), if applicable.

Box 4. Federal Income Tax Withheld

Except as provided below, in addition to checking the
applicable short term or long term box, you are required
to check the “Ordinary” checkbox if all or a portion of the
gain or loss may be ordinary. You may not report both
short term and long term gain or loss on the same Form
1099-B.

You may check the box if reporting the sale of a
noncovered security. Do not check this box if reporting the
sale of a covered security.

For transactions that are denominated in a currency
other than the U.S. dollar, brokers must check the
"Ordinary" checkbox because these transactions may
be section 988 transactions to the customer. Because
a customer may make an election to treat gains and
losses on certain section 988 transactions as capital, the
broker must also check the short term or long term box
to indicate whether any portion of the gain or loss may
be short term or long term. Brokers are not required to
check the “Ordinary” checkbox if the security is a market
discount bond or passive foreign investment company
stock. Brokers are required to check the “Ordinary”
checkbox if the security is a contingent payment debt
instrument subject to the noncontingent bond method.
You are not required to consider other transactions,
elections, or events occurring outside the account
when determining whether the gain or loss on
the sale is short term or long term. You are
also not required to apply holding-period-related
adjustments under section 1259 (constructive sales), 475
(mark-to-market method of accounting), 1092 (straddles),
1233(b)(2) (short sales), 1296 (mark-to-market method
of accounting for marketable stock in a passive foreign
investment company), 852(b)(4)(A), 857(b)(8), 852(b)(4)
(B) (regulated investment company and real estate
investment trust adjustments), and Regulations section
1.1221-2(b) (hedging transactions).

Box 3. Check if Proceeds Are From Collectibles or
From a QOF
Check the “Collectibles” box if the proceeds you are
reporting in box 1d are from a transaction involving
collectibles. Check the “QOF” box if you are reporting a
disposition of an interest in a QOF. A QOF includes a QOF
that is a qualified rural opportunity fund.

12

Enter backup withholding. For example, persons who
have not furnished their TIN to you in the manner
required are subject to withholding on certain amounts
required to be reported on this form. This is called backup
withholding. For more information on backup withholding,
including the rate, see part N in the current Pub. 1099 and
go to IRS.gov/Form1099B.
Use Form W-9 to request the TIN of the recipient.
For foreign recipients, request that the recipient complete
the appropriate Form W-8. See the Instructions for
the Requester of Forms W-8BEN, W-8BEN-E, W-8ECI,
W-8EXP, and W-8IMY.

Box 5. Check if a Noncovered Security

If you check this box, you do not have to complete
boxes 1b, 1e, 1f, 1g, and 2, and you do not have to check
box 12. If you check box 5 and choose to complete boxes
1b, 1e, 1f, 1g, and 2, you are not subject to penalties
under section 6721 or 6722 for failure to report boxes 1b,
1e, 1f, 1g, and 2 correctly. If you do not check box 5, you
are subject to penalties under sections 6721 and 6722 for
failure to report boxes 1b, 1e, 1f, 1g, and 2 correctly even if
you are reporting the sale of a noncovered security.

Box 6. Reported to IRS
See Box 1d. Proceeds, earlier.

Box 7. Check if Loss Not Allowed Based on
Amount in Box 1d
See Acquisition of control or substantial change in capital
structure, earlier.

Regulated Futures Contracts, Foreign Currency
Contracts, and Section 1256 Option Contracts
(Boxes 8 Through 11)—Brokers Only

If you complete boxes 8 through 11, do not complete
any other numbered box except box 1a and, if applicable,
box 4. Also, do not complete the “Applicable checkbox on
Form 8949” box.

Box 8. Profit or (Loss) Realized in 2027 on Closed
Contracts
Enter the profit or (loss) realized by the customer on
closed regulated futures, foreign currency, or Section
1256 option contracts in 2027.

Box 9. Unrealized Profit or (Loss) on Open
Contracts—12/31/2026
Enter the unrealized profit or (loss) on open regulated
futures, foreign currency, or Section 1256 option contracts
at the end of 2026. Do not include amounts related to
Instructions for Form 1099-B (2027)

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contracts that were open on December 31, 2026, and
were transferred to another broker during 2027.

Box 10. Unrealized Profit or (Loss) on Open
Contracts—12/31/2027
Enter the unrealized profit or (loss) on open regulated
futures, foreign currency, or Section 1256 option contracts
at the end of 2027.

Box 11. Aggregate Profit or (Loss) on Contracts
Enter the aggregate profit or (loss) for the year from
regulated futures, foreign currency, or Section 1256 option
contracts. Use boxes 8, 9, and 10 to figure the aggregate
profit or (loss).

Box 12. Check if Basis Reported to IRS

Box 13. Bartering
Enter the gross amounts received by a member or client of
a barter exchange. This includes cash received, the FMV

Instructions for Form 1099-B (2027)

Boxes 14 Through 16. State Information
These boxes may be used by payers who participate in
the Combined Federal/State Filing Program and/or who
are required to file paper copies of this form with a
state tax department. See Pub. 5717, Information Returns
Intake System (IRIS) Taxpayer Portal User Guide, for more
information regarding the Combined Federal/State Filing
Program. They are provided for your convenience only
and need not be completed for the IRS. Use the state
information boxes to report payments for up to two states.
Keep the information for each state separated by the dash
line. If you withheld state income tax on this payment, you
may enter it in box 16. In box 14, enter the abbreviated
name of the state. In box 15, enter the payer’s state
identification number. The state number is the payer’s
identification number assigned by the individual state.
If a state tax department requires that you send them a
paper copy of this form, use Copy 1 to provide information
to the state tax department. Give Copy 2 to the recipient
for use in filing the recipient’s state income tax return.

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Check this box if:
• You are not checking box 5, or
• You are checking box 5 but are reporting basis to the
IRS in box 1e anyway.

of any property or services received, and the FMV of any
trade credits or scrip credited to the member’s or client’s
account. However, do not include amounts received by a
member or client in a subsequent exchange of credits or
scrip. Do not report negative amounts.