Form 1099-B Tax Year 2015 Recipient Checklist
Overview and Applicability
Form 1099-B for tax year 2015 reflects standard broker reporting requirements without year-specific stimulus provisions or health law adjustments. Noncovered securities purchased before defined cutoff dates may have blank acquisition dates and basis fields, requiring recipients to locate original purchase documentation independently. The form focuses on capital gains reporting and Section 1256 contract treatment under longstanding tax rules.
Programs Not Applicable to 2015
No Economic Impact. In 2015, the following items did not apply to Form 1099-B: payment reconciliation, Affordable Care Act shared responsibility payment reconciliation, Tax Cuts and Jobs Act provisions, American Rescue Plan Act expansions, unemployment exclusions, above-the-line charitable deductions, and energy credit changes. The form reports broker and barter exchange transactions in accordance with established capital gains and derivative contract reporting frameworks.
Ten-Step Compliance Checklist
Step 1: Obtain and Verify All Forms
Verify receipt of Copy B from your broker or barter exchange by February 15, with the 2016 deadline extended to February 16 due to the Presidents’ Day holiday. Confirm your taxpayer identification number appears correctly, showing the last four digits for privacy protection while the full number is reported to the IRS.
Reconcile the number of forms received against your account statements for the year. Request corrected copies or amended forms from the payer before preparing your return if forms are missing or contain errors.
Step 2: Identify Covered Versus Noncovered Securities
Review Box 5 on each Form 1099-B. When Box 5 is checked, the securities are noncovered and generally include stock purchased before 2011, mutual fund shares purchased before 2012, dividend reinvestment plan stock purchased before 2012, debt instruments acquired before 2014, and options granted or acquired before 2014.
For noncovered securities, boxes 1b showing date acquired, 1e showing cost or basis, 1f showing codes, and 1g showing adjustments may be blank. You must obtain cost and acquisition date documentation from your records, broker statements, or account history to complete your tax return accurately.
Step 3: Verify Basis Reporting for Covered Securities
Examine whether Box 5 is checked. When Box 5 is not checked, the security is covered, and the broker reports the basis in Box 1e to the IRS. Use the Box 1e amount as your cost basis unless adjustments are required. For covered securities, the broker must report the acquisition date in Box 1b and indicate the holding period in Box 2.
For non-covered securities with Box 5 checked, Box 1e may be blank, and you must determine the basis from your personal records. Check Box 1g for amounts that disallow wash-sale losses and adjust your reportable gain or loss accordingly.
Step 4: Review Adjustment Codes and Loss Limitations
Examine Box 1f for adjustment codes. Code W indicates the disallowance of wash sale losses, meaning the loss cannot be claimed on your 2015 return and must be added to the basis of replacement securities. Code C indicates collectibles subject to special capital gain rates under Internal Revenue Code Section 1(h). Code D indicates a market discount accrual that may affect the timing of income recognition.
When Box 1f shows code W and Box 1g shows a disallowed amount, add that amount to the basis of the replacement security and do not claim the loss on your current return. Refer to Publication 550 and Schedule D instructions for comprehensive wash sale and market discount rules. When Box 15 is checked, no loss may be taken based on the gross proceeds reported in Box 1d for reportable changes in control or capital structure.
Step 5: Determine Form 8949 Reporting Category
Check the box labeled applicable on Form 8949. This designation indicates which specific checkbox on Form 8949 you must use when reporting the transaction. Form 8949, Part I, covers short-term transactions using boxes A, B, and C. Form 8949, Part II, covers long-term transactions using boxes D, E, and F. Box A and Box D cover transactions reported on Form 1099-B, showing that the basis was reported to the IRS.
Box B and Box E cover transactions reported on Form 1099-B, showing that the basis was not reported to the IRS. Box C and Box F cover transactions not reported on Form 1099-B. Use the specific checkbox indicated on your Form 1099-B to ensure proper classification and reporting.
Step 6: Process Section 1256 Contract Information
Review boxes 10 through 13 if your Form 1099-B reports regulated futures contracts, foreign currency contracts, or Section 1256 option contracts. Box 10 shows realized profit or loss on contracts closed during 2015. Box 11 displays the year-end adjustment for contracts that were open as of December 31, 2014, reconciling the prior year's mark-to-market treatment with actual results. Box 12 shows unrealized profit or loss on contracts still open on December 31, 2015, which are marked to market and treated as closed for tax purposes. Box 13 aggregates the amounts from Boxes 10, 11, and 12 to show the total profit or loss.
Report the Box 13 amount on Form 6781 for special Section 1256 treatment, providing 60 percent long-term and 40 percent short-term classification regardless of actual holding period. Do not report Section 1256 contracts on Form 8949 or Schedule D.
Step 7: Document Bartering Income
Verify Box 14 for barter exchange income. When Box 14 contains an amount, your barter exchange reports the fair market value of cash, property, services, trade credits, or scrip received during 2015. This amount represents taxable ordinary income under Publication 525 rules. Include the Box 14 amount in your 2015 gross income on the appropriate line of your tax return.
Maintain detailed records showing the date, description, and fair market value determination for each barter transaction. Bartering income is not reported on Form 8949 or Schedule D but rather as ordinary income on Form 1040.
Step 8: Organize Capital Transactions
Collect all Forms 1099-B along with Form 8949 and Schedule D. Group transactions by the applicable Form 8949 checkbox indicated on each Form 1099-B. For each transaction, extract the security description from Box 1a, acquisition date from Box 1b or your records, sale date from Box 1c, proceeds from Box 1d, cost basis from Box 1e or your records, holding period classification from Box 2, and any adjustments from Box 1g.
Organize short-term transactions for Form 8949 Part I and long-term transactions for Form 8949 Part II. Separate Section 1256 contract data from boxes 10 through 13 for Form 6781 reporting instead of Form 8949.
Step 9: Review State Tax Information
Examine boxes 16, 17, and 18 for state tax details. Box 16 shows state tax withheld from the transaction. Box 17 shows the payer’s state identification number if assigned by the state. Box 18 shows the state name. When Box 16 contains a withholding amount, you may claim this as a state tax credit or prepayment on your state income tax return according to your state’s rules.
Attach Copy 2 of Form 1099-B to your state return if required by that state. Verify your state’s specific requirements for Form 1099-B attachment or separate filing procedures.
Step 10: Complete and File Your Return
Prepare Form 8949 using data from all Forms 1099-B, organizing transactions by the applicable Form 8949 checkbox designation. Transfer Form 8949 totals to Schedule D. Complete Form 6781 separately if you have Section 1256 contract amounts in boxes 10 through 13. Attach Schedule D to your Form 1040, Form 1040-NR for nonresident aliens, or Form 1041 for estates and trusts. Sign and date your completed return.
Do not attach Copy B of Form 1099-B to your federal return because the IRS receives Copy A directly from the broker. Retain Copy B with your tax records for at least three years. Consult the IRS “Where to File” page for the proper mailing addresses and filing procedures.
Form-Specific Limitations
Nonresident aliens receiving broker proceeds may be subject to federal income tax withholding and Form 1042-S reporting, rather than Form 1099-B, under the rules outlined in Publication 515. Form 1099-B does not allow recipients to claim credits or deductions directly. All gains and losses are reported on Form 8949 and Schedule D, where they are subject to holding period rules, basis tracking requirements, and character classifications outlined in the 2015 Schedule D and Form 8949 instructions.
Key Clarifications for 2015
Basis Reporting Requirements
Brokers must report the basis for covered securities in Box 1e. For securities acquired through non-compensatory options granted or acquired on or after January 1, 2014, the basis includes mandatory adjustments to reflect option premiums paid. For non-compensatory options granted or acquired before January 1, 2014, brokers may, but are not required to, adjust the basis for option premiums. Compensatory options do not include option-related amounts in the basis because those amounts are already reported on Form W-2 as compensation income.
Holding Period Classification
Box 2 indicates whether any gain or loss is short-term or long-term. For covered securities with Box 5 unchecked, brokers determine the holding period from the acquisition date in Box 1b to the sale date in Box 1c. Securities held one year or less generate short-term capital gain or loss. Securities held for more than one year generate long-term capital gains or losses. For noncovered securities with Box 5 checked, Box 2 may be blank, and you must determine the holding period classification from your own records.
Wash Sale Adjustments
When Box 1f shows code W and Box 1g shows a disallowed loss amount, you purchased substantially identical securities within 30 days before or after the sale. The disallowed loss cannot reduce your 2015 taxable income. Instead, add the disallowed amount to the basis of the replacement securities. This adjustment preserves the economic loss for recognition when you eventually sell the replacement securities.
Brokers identify wash sales occurring within the same account but may not identify wash sales involving multiple accounts or different brokers. Review all your trading activity to ensure you identify and adjust for all applicable wash sales.
Corporate Actions
Box 15 serves as a checkbox indicating loss is not allowed based on the amount in Box 1d. This typically applies to certain corporate reorganizations, acquisitions of control, or substantial capital structure changes where tax law prohibits loss recognition despite an apparent economic loss. When Box 15 is checked, you cannot claim the loss on your return. The broker should provide a separate statement explaining the corporate action and identifying nondeductible losses.
This checklist provides comprehensive guidance for accurately reporting 2015 Form 1099-B transactions on your federal income tax return, ensuring the proper classification of capital gains and losses and compliance with IRS reporting requirements.
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This checklist is for educational purposes only and does not constitute tax or legal advice. Always review official IRS instructions and consult a qualified professional for guidance.
