Yes, you do need to report the 1099-B for matching purposes. You are correct, that you are not allowed to take the loss - per IRS rules, the lost must be claimed in the year it became worthless. And, since the loss was taken so long ago, you can no longer amend your tax return for the year the security became worthless. As to the basis, you can put zero as your value. First of all, you must enter zero if you cannot determine the value. Secondly, since the stock is worthless, your sales price is zero anyway, so this will have no impact.
However, do report the form 1099-B, as the IRS has a copy of it and will be looking for it on your tax return.
- Federal Taxes
- Wages and Income
- Investment Income
- Stocks, Mutual Funds, Bonds and Other - follow the prompts; your sale date is Dec 31 if no other date is listed on the form
