What do i do with a 1099-B statement that says transactions for which basis is not reported to the IRS and for which short-term or Long-term determination is unknown

[ToddL · Accepted solution]

You will have to make a good-faith effort to estimate the date you purchased those securities and the cost basis.  For cost basis, don't forget add any dividends you may have reinvested  over the years. They should already have been taxed -  adding them to the cost basis will reduce your gain on the sale (or increase your loss). 

If you believe it was long term transaction, enter a date that is at least 1 year earlier than the date you sold the security (e.g. 12/31/2015). As long as the program sees you held the security for at least 1 year before selling it, the gain (or loss) will be properly characterized.

If you believe it was a short term transaction, enter a date that is at less than 1 year before the date you sold the security (e.g. 01/05/2016).  As long as the program sees you held the security for less than 1 year before selling it, the gain (or loss) will be properly characterized.

[juliojulio11]

I am having trouble completing and entering information from Fidelity 1099-b long term stock sold and

not reported to the IRS.  Can you help?

[dpa3024]

Did youj ever get help?  Im in the same boat.....

[fanfare]

IRS requires all sell transactions to be reported.

You are expected to keep cost basis records and fill in the missing fields from your own records.

The exact date doesn't matter except as to holding period which is either more than one year (LT), or not (ST).

For this reason, "Various" is allowed in Date Acquired field.

If broker doesn't have the records, most likely you have held the security for a long time.

[canyonboy22]

These are reported by Vanguard twice in 2021: first on 03/19/2021 & 12/28/2021 for long-term; and only one time for short-term items: on 12/28/2021. The short & long term were on a combined 1099-DIV form. So according to the instructions on the form I go back and check when my purchases were, except increases in the fund price are what trigger increases do they not.

[RobertB4444]

@canyonboy22  On your 1099B when it says basis is not reported to the IRS it usually still has a cost basis there.  It is just information that has not been required to be submitted to the IRS so it has not been.  If the cost basis on the transactions is shown as blank or zero then you will have to go back and check your records to see what you actually paid for the securities in question.

In some cases the 1099-B will say "Cost Basis is not known".  This is usually the result of changing brokers and bringing the stocks with you from one broker to the other, or because the information is so old that the broker no longer has it.  Either way you are expected to provide the information on how much you originally paid.

Increases in the fund price when it is sold will trigger higher gains, however increases in the fund price only trigger sales if the broker deems that they should.