My consolidated 1099 from Fidelity says this in the overview https://i.imgur.com/TyngQTH.png
Which specifically points to this in the 1099-B... https://i.imgur.com/uBR0Bvt.png
As you can see in the above screenshot it actually HAS the cost basis and even the gain/loss from it. So why does it still say " Short-term transactions for which basis is not reported to the IRS" there?
In my situation of having "Short-term transactions for which basis is not reported to the IRS" what am I supposed to do to fix it?
Does it mean the cost basis Fidelity is showing on the 2nd screenshot is incorrect?
Does it mean even if I electronically import the 1099 into TurboTax, it will be missing cost basis EVEN THOUGH the PDF seems to show it?
After importing it, TurboTax asks this question https://i.imgur.com/LjtRJQB.png
One option is "My 1099-B has info I know isn't right, or it has extra info I need to add", should I click on that choice?
What am I supposed to do to resolve the situation, I don't even know what questions to ask.
Thanks
TaxableTurtle1,
If Fidelity has cost basis numbers you trust, then by all means use them whether or not they were reported to the IRS. There are some odd situations related to spinoffs, mergers and the like where new shares are issued but their basis depends on a prior long-term holding for which the broker is not required to report the basis even though they do have those figures. I've also seen some similar chat about crypto transactions.
Whether the basis for your transactions were reported to the IRS, and whether the information on your 1099-B is accurate are two different issues. As to the first, Fidelity has represented to you, in writing, that basis was not reported. Thus, unless Fidelity should tell you otherwise, you should be able to reasonable rely on the information they have given you about basis reporting and report the transactions on your return as basis not reported.
Regarding the basis amount and the sale proceeds, you might consider comparing those numbers with the same numbers on your trade confirmations. If they match, then you have a reasonable basis to enter your 1099-B as is. Therefore, on your last screenshot you can check the box, None of these apply and continue through the rest of the application. However, if they don't match, the trade confirmations may likely take precedence over the Form 1099-B as the trade confirmations were prepared contemporaneously with the transaction in contrast to the Form 1099-B which was prepared much later in time. Here again, you might just check with Fidelity if you see a discrepancy and ask them which document--the 1099-B or the trade confirmation--is the more reliable document.