Yes, you need to report it. The IRS required the 1099-B to be issued and they actually look at the income first. Once the return is filed, even though they also see the cost basis, your return shows the zero gain/loss.
It is a bit confusing. The interest earned on your certificate of deposit (CD) will be reported on the 1099-INT. Once the CD matures and is redeemed, it is considered a sale of sorts and for this reason it is reported on the 1099-B. You do select Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B), then Stocks, Bonds, Mutual Funds.
Each year as the interest is reported it becomes part of your cost basis and for that reason you do have a zero gain or loss. It is a common tax action. Discounted bonds have always been reported such as corporate bonds, municipal bonds and others.
If they substitute document does include 1099-MISC and it's all zeros you can ignore that form. Only forms that have information must be reported on your tax return.
@LB641
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