". . . and so cost basis is not required."
That is not correct. The fact that the stock sold was "noncovered" only means the broker is not reporting the basis to the IRS. Some basis - even $0 - needs to be entered and you can do that if you don't mind paying tax on the entire amount of the proceeds.
The basis for the sale has to come from your own records, just like investors have been providing that information for decades before the concept of covered/noncovered securities was dreamed up by the IRS.
Presumably you do have some basis in the stock, I'd think.
Tom Young
