How do I tell the IRS that the stocks were not sold - but transferred in kind to Vanguard? Etrade show a $3235 long term gain on covered and non covered securities, but the stocks have not been sold. I understand I need to provided the correct cost basis to Vanguard for future sales.
contact E-trade to correct the 1099-B. This should be much simpler than trying to convince the iRS that the 1099-B is wrong. This assumes the securities were transferred from one taxable account to another. A transfer from a tax-exempt account to a taxable account is taxable.
both accounts were taxable. Contacted E-trade - they say the form is confusing because the stocks were held in a US based employer that was merged or acquired - ticker symbols changed. So their response is - consult a tax professional to figure it out - we can't help you. They do reference 60 shares of stock in a Long term noncovered securities category, without a cost basis defined - and then the fine print say these are not subject to IRS cost basis reporting regulations.
Think I may need to file an extension to get a professional to look into it for me - no issues with the 20 other forms we received, just this one.