How does the IRS view trade exchanges like Tradebank?

By David Hall

The IRS classifies trade networks as third-party record keepers. Therefore, Tradebank has the same reporting requirements as banks and stock exchanges. Each year, members receive a Form 1099-B that reports their Tradebank sales (U.S. $1.00 = 1.00 T$). A copy of the client’s Form 1099-B is also sent to the IRS, as required by law.