I am familiar with inherited stock having its cost basis based on the date of death. I am also familiar with taking the high and low on that day to determine the average as the new cost basis. I have kept detailed and accurate records in this regard.
However, my monthly statements still reflect the old cost basis. Merrill admitted they were supposed to adjust that at TOD, but failed to do so and now in order to correct it, they suggest I send a 3rd party company my father's last statement and of course pay a fee per security. The company states I can "email" them that information (which does not sound very secure to me.) Supposedly this would be used by Merrill to correct my monthly statements to the new cost basis.
But I have to wonder based on all what I have read on the Internet if this effort is really needed. I am sure I am not alone in this type of situation. Will the IRS accept a person's tax return if they use the cost basis they determined is accurate from for example Yahoo's Historical Data? ---Even if Merrill in this case sends them at tax time a different cost basis -- the original no doubt.
Thoughts on this would be greatly appreciated.
