Stakeholder 1099-B Status Tool
Stakeholders that have sold through Carta Inc.’s tender offer feature or Carta Inc.’s public markets product can now view the delivery status of their 1099-B tax document. This new feature allows sellers to determine that their 1099-B for a particular selling year:
- has already been delivered
- will be delivered
- is not applicable for the year and won’t be delivered
How does this improve the stakeholder’s experience?
1099-B forms capture the capital gains reported to the IRS for sales done on Carta. Sellers use the information on their form 1099-Bs to file their taxes.
Not all sales done on Carta Inc.’s tender offer tool or Carta Inc.’s public markets product are reported on 1099-Bs. Prior to the release of this product, stakeholders have reported challenges in determining why they did not receive a 1099-B for a calendar year. This tool allows stakeholders to determine the status of their 1099-B quickly and clearly.
1099-Bs might not be provided for several reasons:
- The stakeholder is not subject to IRS reporting (is under a W-8BEN)
- All sales done are cashless sales and the issuer is using Carta’s Rev Proc 2002-50 functionality
- The stakeholder did not sell anything for the tax year where they were paid proceeds through Carta Inc.’s tender offer tool or Carta Inc.’s public markets product
- All transactions excluded from filing (a common reason is treating the dispositions as option cancellations rather than cashless sales)
How does it work?
The stakeholder navigates to account:tax documents where all 1099-B documents are stored, and clicks on the “Missing a Form 1099-B” link:
From here, the participant can select the tax year and check the status on that year’s 1099-B:
The tool will indicate that either the 1099-B has already been distributed, or will give the reason that the stakeholder has not received a 1099-B for that year.