Where Is the FATCA Box on 1099-B and What to Do If It’s Missing?

The IRS requires financial institutions to report certain transactions under the Foreign Account Tax Compliance Act (FATCA). On Form 1099-B, a checkbox indicates whether the FATCA filing requirement applies, helping ensure compliance with tax laws related to foreign accounts and investments.

If you’re reviewing your Form 1099-B and don’t see this box, it’s important to understand why it might be missing and what steps to take.

Where to Find the FATCA Filing Requirement

The FATCA filing requirement checkbox appears in the upper portion of Form 1099-B. Brokers and financial institutions use it to indicate whether a transaction falls under FATCA’s reporting rules. While its presence does not necessarily mean additional tax is owed, it signals to the IRS that a foreign financial asset or account may require disclosure.

This checkbox is particularly relevant for individuals or entities with foreign financial interests, aligning with broader IRS reporting obligations like Form 8938 (Statement of Specified Foreign Financial Assets). If checked, it may indicate a transaction involving a foreign financial institution or an account subject to FATCA reporting. Taxpayers should ensure consistency between their 1099-B and other tax filings to avoid discrepancies that could lead to an audit or penalties.

Circumstances When the Box Might Be Absent

The FATCA filing requirement checkbox may be missing for several reasons. Domestic brokerage firms without foreign reporting obligations often omit it because FATCA primarily targets foreign financial institutions and U.S. taxpayers with offshore assets. A broker dealing exclusively with U.S.-based securities and accounts has no reason to include this designation.

Certain investment accounts may also result in a missing checkbox. Retirement accounts such as IRAs and 401(k)s are generally exempt from FATCA reporting, so transactions within these accounts do not require FATCA-related disclosures. Similarly, transactions involving securities not tied to foreign financial institutions or foreign-held assets may not trigger the FATCA designation, even if the taxpayer has other foreign investments.

Errors in reporting practices by financial institutions can also lead to a missing checkbox. While most brokers follow IRS guidance, variations in how forms are generated may result in discrepancies. Smaller brokerage firms or those using third-party reporting services may not always include the checkbox if they determine it is unnecessary. If a taxpayer has foreign investments but does not see the checkbox, it may be due to the broker’s internal reporting policies rather than an actual exemption from FATCA requirements.

Steps to Correct Any Reporting Omissions

If the FATCA filing requirement checkbox is missing when it should be present, first determine whether the omission is an error or a legitimate exclusion. Reviewing the transactions reported on the form, including the types of securities and the financial institution handling them, can clarify whether FATCA reporting applies. Cross-referencing with other tax documents, such as Form 8938 or Schedule B of Form 1040, can help confirm whether foreign assets were disclosed elsewhere.

Contacting the brokerage or financial institution that issued the form is often necessary to address discrepancies. If an error occurred, they may issue a corrected 1099-B. Requesting an explanation from the institution can help determine whether the omission was intentional or an oversight. If a corrected form is issued, taxpayers should ensure it aligns with all other tax filings to prevent mismatches that could draw IRS scrutiny.

If the financial institution does not acknowledge an error or refuses to issue a correction, taxpayers still have reporting obligations. Filing Form 8275 (Disclosure Statement) with the IRS may be advisable in such cases. This form allows taxpayers to disclose positions that may not be fully reflected in third-party reporting documents, reducing the risk of penalties for non-disclosure. Consulting a tax professional can also provide guidance on whether an amended return is necessary, particularly if the missing checkbox affects foreign asset reporting requirements.