I'm dealing with the same issue myself. CPA's I visited seem to have a difference in opinion on how to handle this. First said not to report anything, after all its tax free. Second said report it as shown on 1099b but add an adjustment to negate the "gain". I'm not conformatable with either. I also didnt report OID as I never received a 1099OID. I just need to know how to include this on my 8949.
