I have a related question. My 1099-B also has incorrect proceeds stated for a bond "sale." Actually, there was a corporate action that was the result of a bankruptcy. My original bonds were exchanged for worthless bonds. I received no cash payment.
However, my broker reported this as a sale where the proceeds I received were equal to my cost basis. On top of that, they reported an accrued market discount.
It makes no sense to me to have to pay income tax for an accrued market discount that I never received.
I think that the fair way to represent this transaction is a sale resulting in proceeds of $0 , an accrued market discount of $0, and reporting my cost basis in the original bond.
Would you agree? And if so, is the best way just to change the numbers the brokerage sent me, or come up with some work-around? (By the way, I have contacted my brokerage about this, but they seem to be in no hurry to respond).
Thanks in advance!
