Online fillable copies.

To ease statement furnishing requirements, Copies B, C, 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.

Qualified Opportunity Funds

A Qualified Opportunity Fund (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 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 2021 General Instructions for Certain Information Returns.

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. middleman 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.

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.

Substitute statements

Brokers that use substitute statements may be able to report customer transactions (stock 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, which provides the rules for substitute forms.

Additional information required for covered securities

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 Bella bought shares of stock in ABC Corporation in April 2000, April 2020, and August 2020. The shares of stock bought in 2020 are covered securities. The shares of stock bought in April 2000 are noncovered securities. In June 2021, Bella 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 2021 Forms 1099-B (one for the securities bought in April 2020 with long-term gain or loss and one for the securities bought in August 2020 with short-term gain or loss). You must report the sale of the noncovered securities on a third Form 1099-B or on the Form 1099-B reporting the sale of the covered securities bought in April 2020 (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, and 2 blank or you may complete boxes 1b, 1e, and 2 and not be subject to penalties under section 6721 or 6722 for failing to report this information correctly.

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 noncovered security, you may check box 5. In this case, you do not have to complete boxes 1b, 1e, 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 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 2021 but the short sale was not closed by the end of 2021, file a 2021 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 2021 tax withheld on that Form 1099-B.

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.

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 middleman 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, 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 middleman 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.

The 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 2021 is due on or before March 15, 2022. 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.