1099-B and Non covered shares

[taxquestion14]

I purchased a few shares of a Utilities stock in the middle 1980’s and put it in the Utility company’s dividend reinvestment plan.  I left it alone and it grew. I sold it in 2022. I received a 1099-B for the sale of the stock from the brokerage firm that runs the plan for the Utility.

The shares were broken down in three categories on the 1099-B.

1. Short term Covered Securities with proceeds and cost basis reported to IRS (3% of shares)
2. Long term Covered Securities with proceeds and cost basis reported to IRS (32% of shares)
3. Long term Non-Covered Securities with proceeds but no cost basis reported to IRS (65% of shares)

I was able to determine the cost basis for the non-Covered securities because I maintained records from the dividend reinvestment plan.  When I printed out my return which I e-filed, the return indicated that I did not have to attach any pdf.  However, when I was preparing the return, specifically the Form 8949 Sales of Capital Assets, the TurboTax program kept referring to providing additional supporting documentation for the non-covered shares to an IRS office in Austin, TX.

Can anyone confirm that I am required to report Non-Covered Securities cost basis supporting documentation to IRS, including what is required?

[PattiF · Accepted solution]

No, you do not need to send anything to the IRS office in Austin, TX. Keep the records that you have maintained to record the dividend reinvestment plan. If the IRS needs additional information, they can contact you. You do not need to send the documentation that you have for the Utility company stock.

[biker2]

I have a question on Non-covered Mutual Fund shares purchased prior to 2017 but sold in 2022. according to my financial services company these sales do no need to be itemized. They are reported on Schedule D, Part 2 line 9. Box E is checked. The form I file in Turbotax appears to show this information correctly. However, the imported sales info shows all of these long term non-covered sales. Turbotax wants additional information: Date acquired and cost basis. Turbotax says to put "various" into the date acquired. Did that. But, Turbotax still wants the cost basis. Since the Schdeule D has the info correctly entered, can I ignore the Turbotax requests for cost basis and go ahead and submit my return?

[fanfare]

If you are summarizing Box E transactions,
IRS requires details of your SELL transactions to be supplied on some additional Form 8949,
or on your other forms (e.g. consolidated 1099-B or spreadsheet) which have the same information and in the same manner as Form 8949.

the detail reporting exception excuses Box A or Box D transactions without adjustments, only.

HOWEVER, 

if you sold everything in one day, then one line can describe the transaction.

How can Schedule D show the correct information without your cost-basis for the shares you sold ?

@biker2 

[GeorgeM777]

No, because these mutual fund transactions are non-covered, and therefore, basis was not reported to the IRS.  TurboTax is requesting cost basis because the IRS requires that transactions of this type be reported on Form 8949, Sales and Other Dispositions of Capital Assets, in addition to Schedule D.   Form 8949 requires, among other things, cost basis for each transaction.  

@biker2