When Do Brokerages Send 1099-B and What to Expect

Brokerages typically send 1099-B forms by January 31st of each year, but some may send them as early as mid-January. This deadline is set by the IRS.

The 1099-B form reports the proceeds from the sale of securities, such as stocks, bonds, and mutual funds. It's essential to review this form carefully to ensure accuracy.

You'll need to report the information on the 1099-B form on your tax return, specifically on Schedule D. This form will help you calculate any capital gains or losses from your investment sales.

Keep in mind that if you sold securities through a brokerage account, you'll receive a 1099-B form, but if you sold securities through a non-brokerage account, you may need to report the sale on your tax return without a 1099-B form.

So, what gets reported on a 1099-B? Well, it's a pretty comprehensive form that includes about 30 different boxes for reporting. You'll receive a separate Form 1099-B from your brokerage, which is also sent to the IRS.

The official IRS Form 1099-B looks like a triplicate form, but most traders and investors don't receive it in this format because it would mean a separate form for each transaction. Instead, the IRS allows brokers to report 1099-B details in a substitute statement.

This substitute statement is often a combined Tax Reporting Statement, which includes other reporting from the broker, such as 1099-INT, 1099-DIV, and 1099-OID. It may be many pages long.

Here's a breakdown of the types of transactions that will result in a 1099-B:

You may also receive a 1099-B if you participated in a barter exchange or received cash, stock, or another type of property from a corporation that your broker knows or has reason to know about.

If you receive a 1099-B, it's likely because you sold certain types of investments through a broker or brokerage.

The 1099-B reports key information about each transaction, including the description of the property, date acquired, date sold, proceeds, cost or other basis, and accrued market discount.

You can expect to see a list of columns on the 1099-B, each labeled to correspond with a specific box number. Here's a breakdown of what you might see:

Keep in mind that the 1099-B reports limited wash sale adjustments using different requirements than those for taxpayers, and there are many documented errors, inconsistencies, and anomalies in 1099-B reporting provided by brokers.

The IRS mailing deadline for 1099-B forms is normally February 15th, but this year it fell on a Saturday, so the adjusted deadline is Monday, February 18th.

Brokerage firms often send a "preliminary" 1099 by this date to satisfy the IRS requirement, but some securities may not report their numbers to the broker in time.

I learned this the hard way when I received a corrected 1099 form for the Vanguard REIT ETF (VNQ) a month after the preliminary form arrived.

TD Ameritrade sent me an email recently that a corrected 1099 is on its way, which is why I'm waiting to file my return until I'm confident that all my 1099 forms are finalized.

Many brokerage firms delay sending out their corrected or "final" 1099 until a month or more later, so it's best to wait to file until you're sure all your forms are finalized.

The last time I filed early, I had to file an amended return because the corrected 1099 form arrived shortly afterward.

Some brokerages file for an extension on 1099s due to tax reporting issues with foreign income.

Brokerages like Schwab often file for an extension to avoid sending out multiple corrected forms.

The due date for furnishing statements to recipients for Forms 1099-B, 1099-S, and 1099-MISC (if amounts are reported in box 8 or 14) is February 15, 2018.

Brokerages may bundle the 1099-DIV with the 1099-B, so one might assume that the deadlines are the same.

If you trade stocks, options, and other securities through a broker, you likely receive Form 1099-B, which is an IRS-required document that reports cost basis and proceeds of your transactions.

The 1099-B is designed to be a simple reporting tool, but for most traders and active investors, it's not enough for tax reporting.

You can't use your 1099-B for taxpayer reporting, so you'll need to find alternative methods to prepare Form 8949 and other necessary tax reports.

Ideally, you'd be able to use your 1099-B, but it's generally inadequate for traders.

The IRS requires brokers to report cost basis and proceeds of transactions on Form 1099-B, but it's not a reliable source for tax reporting.

Many brokerages file for an extension on 1099s due to tax reporting issues with foreign income positions.

Some brokerages bundle the 1099-DIV with the 1099-B, so the deadlines might seem the same. However, the due date for furnishing statements to recipients for certain forms is February 15.

Brokerages may mail 1099 forms later than the deadline, with some stating they'll be provided by mid-February or even as late as February 18.

Here are the due dates for certain statements sent to recipients:

If you sold any of the following through a broker or brokerage, you can expect a 1099-B in your inbox or in the mail: stocks, bonds and other debt instruments, short sales, commodities, regulated futures contracts, foreign currency contracts, forward contracts, options, and securities futures contracts for cash.

Selling stocks, for example, is a common reason for receiving a 1099-B. I've seen friends receive these forms after selling their investments.

Here are some specific types of transactions that can result in a 1099-B:

Participating in a barter exchange can also result in a 1099-B, as the IRS considers the value of the trade taxable earned income.

Many brokerages, like Schwab, file for an extension on 1099s because of tax reporting issues with foreign income.

The due date for furnishing statements to recipients for Forms 1099-B, 1099-S, and 1099-MISC (if amounts are reported in box 8 or 14) is February 15.

February 15 seems consistent with the messages you might get from your brokerages that say the forms will be mailed by mid-February.

My broker even states that for 2018, 1099s will be provided on February 18th.

The official IRS mailing deadline for 1099-B forms is normally February 15th, but this year it fell on a Saturday, so the adjusted mailing deadline was Monday, February 18th, 2014.

Many brokerage firms will only send a “preliminary” 1099 by this date to satisfy the IRS requirement.

Here are some key deadlines to keep in mind: