Instructions For Form 1099-B: Fill & Download for Free

Form W-2 is an informational form that is used by employers to report withholding on employee wages.Form 1099 refers to a series of informational forms that are used to report other types of income. There are a number of different types of forms in this series; some common ones are Form 1099-MISC, used among other things to report compensation income paid to non-employees; Form 1099-INT, used to report income earned on interest-bearing accounts; Form 1099-DIV, used to report income from dividends; and Form 1099-B, used primarily by brokerage firms to report income from sales of stock.The IRS has a searchable database of forms and publications, Forms & Pubs, on its Web site. Generally, if you want to find out about a specific form, you can use that database to find both the form and the instructions for its use. If you want to find out about a specific topic, you can also use that database to search for publications on that topic. I use this a lot. The IRS has one of the best publicly available databases on a US government site, in my opinion.

Form 1099-A is used by banks and other lending institutions to report the acquisition of secured property when the owner abandons it while there is still an outstanding debt to the lender. This applies with loans that are secured against property. It’s often used in conjunction with Form 1099-C, cancellation of debt, because if the bank is seizing the abandoned property due to outstanding debt, then that debt becomes income for the owner. So, both forms are needed. The relevant instructions are found here at this link: https://www.irs.gov/pub/irs-pdf/i1099ac.pdfForm 1099-B is used by brokerage firms to report the sale of their client’s property so that their clients know how to report their gains and losses on their tax returns. The relevant instructions are found here at this link: https://www.irs.gov/pub/irs-pdf/i1099b.pdfThe difference is that they don’t describe the same type of transaction at all. The 1099-A always describes a situation where a customer has exited a relationship with their lender in a way that violated their contract. This is not a form used in the course of healthy everyday business. One would hope never to have to issue or receive such a notice, and no one goes into a loan with the expectation that one will be required. This would generally be considered unfortunate for all parties involved. Additionally, this is only used by lenders. A brokerage would not be able to keep property that was abandoned by a client, so they would never issue a 1099-A for such a purpose.The 1099-B is a form which is used annually by a brokerage in the course of ongoing business with their clients. It does not represent loan transactions but transactions involving funds held by the brokerage for investment. Although it can describe the end of the client relationship if they have completely cashed out all of their stocks, it is common to get one every year for those who have mutual funds or do any kind of stock trading during the year. It has other uses as well.

You’ll receive a 1099-DIV when you’re a shareholder in a domestic or foreign corporation, and it distributes over $10 to you during the tax year. The form also applies to dividends from money market funds.You’ll get a 1099-B when your stockbroker processes transactions on your behalf or you have IRA transactions. And if you joined a barter exchange club, you’ll receive the form from your organization when you exchange goods or services on their platform.You can also find other miscellaneous transactions reported on the forms — review 1099-DIV Instructions and 1099-B Instructions for a full list.