The term Form 1099-B refers to an Internal Revenue Service document issued by a broker or barter exchange that summarizes the proceeds from the liquidation, redemption, or sale of stock. The information reported on IRS Form 1099-B (Proceeds from Broker and Barter Exchange Transactions) is subsequently used by taxpayers to complete Schedule D of Form 1040.
When an investor liquidates, redeems, or otherwise sells shares of stock, they will realize a gain or loss on the transaction. Form 1099-B is completed by a broker or barter exchange and is used to record and report this gain or loss. Taxpayers will then use the information recorded on this form when completing their federal income tax return. The IRS requires these forms to be completed and sent to taxpayers by January 31.
The information contained on Form 1099-B includes: