Agreed, it can be difficult to know with sufficient certainty that a security is worthless. As mentioned by @DianeW777, when a business closes or files for bankruptcy, would be useful facts in support of a claim that a security is worthless. In addition, if a security is delisted, that would also tend to support a claim that a security is worthless because it no longer has a public market. The SEC's order revoking the registration of all classes of stock in the company does help your tax situation, but at this time, we don't know what actions the company intends to take regarding their stock.
The fact that your firm, Fidelity, has told you the security is not worthless does not help your tax situation. You might consider asking them to list, for sale, the security in question to see if there are any bidders that are willing to purchase the security from you. If you can close the transaction, even for a few cents, at least you will have a realized loss and can enter same on your tax return and also avoid the whole issue regarding whether your security qualifies as a worthless security.
Whatever evidence your broker can provide to you with regard to the steps they took to sell the security in question, and their inability to do so, might help your tax situation. However, even if they cannot sell it now, does not mean that at some time in the future, their may be a market for your security.
Given all these factors, you might consider discussing the matter with a personal tax advisor.
@Brian P2
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