Investors & landlords
If you didn't report the 1099-B form, the IRS would likely adjust your tax after you submitted it by assessing an amount due based on the sales amount reported on the 1099-B form. You could then explain what you did and if the correct tax was calculated, the IRS would abate the tax due and all would be good.
I would think it best then to report the 1099-B form information the way it is presented, but with an adjustment to the cost basis to reflect the correct amount of tax due.
You will see an option to adjust the cost basis entered on a 1099-B form on the screen you enter the form information on. Look for where it says "I'll enter additional info on my own":
