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Intended audience: Brokers and barter exchanges with clients subject to Washington’s capital gains tax.
Effective Jan. 1, 2026 (tax year 2025), brokers and barter exchanges must send the Department of Revenue all copies of United States Internal Revenue Service (IRS) form 1099-B for sales or exchanges of long-term capital assets when both of the following are true:
- The long-term capital gain from the sale or exchange is allocated to Washington.
- The broker or barter exchange is the payor.
How do I know if the sale or exchange is allocated to Washington?
Generally, the sale or exchange of long-term capital assets is presumed to be allocated to Washington if any of the following are true of the payee:
- Their last place of domicile known to the payor is in Washington.
- Their address on file with the broker or barter exchange is in Washington.
- Their address on their IRS form 1099-B is in Washington.
- Their account with the broker or barter exchange was opened in Washington.
- They make use of a broker or barter exchange’s physical place of business in Washington.
How do I submit copies of form 1099-B to the department?
You will submit copies of IRS form 1099-B through our secure My DOR portal. You may enter the information manually, or upload batches of data in bulk. You must provide the forms to the department electronically.
When are the forms due?
You must electronically submit all required copies of form 1099-B to the department no later than 90 days after filing them with the IRS.
Are there any penalties?
Yes. Brokers and barter exchanges are subject to a penalty of $50 for each instance of failing to file or willfully filing false or fraudulent copies of IRS form 1099-B as required by the department.
Definitions
Broker and barter exchange have the same meaning as provided by Title 26 U.S.C. Sec. 6045 of the Internal Revenue Code.
Long-term capital asset means a capital asset that is held for more than one year.
Payee means the person for which a broker or barter exchange files a United States IRS form 1099-B.
Payor means a broker or barter exchange that files a United States IRS form 1099-B for a payee.