1099B Cost Basis Not Reported to IRS for ETFs Purchased Prior to Jan. 1, 2012

[freddytax]

Does the IRS ever see this amount?  I'm not suggesting evading good ol' Uncle Sam and Scout's Honor. 🙂

[Bsch4477]

The IRS just gets a copy of the 1099-B. 

[freddytax]

Thanks, bsch!  So what does "Not Reported to the IRS" mean?

[freddytax]

Maybe just technical, i.e., post Jan. 1, 2012 there is some mechanism outside of the 1099B for brokers to report Cost Basis to the IRS and pre Jan. 1, 2012 brokers need only report via the 1099B?

[Bsch4477]

Correct. Mandatory reporting wasn’t required before that date. 

[fanfare]

For non-covered securities ( BOX B or E) showing zero (wrong) basis, enter the correct basis yourself.
Use code "B" and put -0- in col (g).

This still happens today for various reasons.

@freddytax