Missing 1099B / Gain is only $10

kbdr219 · ‎September 17, 2020

I forgot to include a form 1099B where there was a $10 short term gain reported. The total proceed amount was $1500. The form does report the cost basis of the stock that was sold. Is this something the IRS will follow up on or should I not bother following up with it given the small amount of the gain, and because the cost basis is reported on the form?

Critter-3 · ‎September 17, 2020

If the sale is covered then you have 2 options ...

1) amend before the IRS sends a notice (it can be efiled now)

OR

2) wait for the IRS notice that may or may not come.

If the sale is non covered then you must amend or be prepared to answer the IRS notice in a year or 2.

Anonymous · ‎September 17, 2020

it's is strange that a 1099B would show sales price, no cost but a $10 gain. there are 3 types of reporting for any security sale to the IRS type A or D - sales proceeds and basis reported (A is ST, D is LT)

type B and E - sales proceeds reported but not basis- basis is provided to taxpayer

type C and same as B and E but basis not provided.

from what I've seen is total proceeds are reported to the IRS.

the issue is do the IRS records show $1500 more in proceeds than you reported. They have would have no way of knowing what your gain is. And by the way, it's strange for a 1099B to show sales price, no cost but a $10 gain.

kbdr219 · ‎September 17, 2020

the cost basis is shown on the 1099B

Critter-3 · ‎September 17, 2020

Then it should be a COVERED sale.

Missing 1099B / Gain is only $10

After you file

After you file

After you file

After you file