Get your taxes done using TurboTax
After reading the entire thread of this post, this would be long-term not reported as LindaS5247 mentions since there no cost basis reported on the 1099B for some of the shares. My apologies.
The reason i know this is because this is how it is listed in the sales category screen that I will include below this post. Since the 1099B included no cost basis and the basis was not reported to the IRS, it is not reported. The implications are at most minimal as far as the IRS is concerned. It may or may not be an issue if you have a large number of stock transactions and declare a big loss. If that is the case, it may raise a red flag in the event the IRS examines your return and finds that no stock basis has been reported to them and not reported to the IRS. Also, if you report these as non-covered, this assumes that there was basis reported on the 1099B when there wasn't. his may raise an eyebrow if you were audited although i have never experienced this in my years of tax preparation.
What is mostly critical to you however is if these are long -term or short term gains because long term gains are taxed as capital gains while short term gains are taxed as ordinary income.
Hopefully i have given you some insights that you may find useful. Here is the screenshot that i promised you in my last post. If you click on the learn more tab, this will tell you what all these categories mean.
