Brokers must submit a 1099-B form to the IRS and send a copy directly to every customer who sold stocks, options, commodities, or other securities during the tax year. The IRS requires submission of the form to serve as a record of a taxpayer’s gains or losses. Forms are sent to investors in January and February.3 For example, let's assume you sold...

A separate Form 1099-B must be filed by a brokerage or barter exchange for every single transaction involving the sale (including short sales) of stocks, commodities, regulated futures contracts, foreign currency contracts (pursuant to a forward contract or regulated futures contract), forward contracts, debt instruments, options, or securities fut...

If you receive a 1099-B, you will need to file Schedule D. This is where you record your gains and losses for the year. Form 8949, Sales and Other Dispositions of Capital Assets is used to record the details of the transactions.61