Hello, my income in 2017 only have 2 items: interest from bank and brokered CD. The bank issued the 1099-B for only the brokered CD (I didn't sell any stock).
In 1099-B, wrote:
2017 PROCEEDS FROM BROKER & BARTER EXCHANGE TRANSACTIONS
COVERED TRANSACTIONS - Cost basis reported to IRS - Form 8949, Part I, (A)
SHORT TERM CAPITAL GAINS AND LOSSES - 1099-B Line 2 - Box 6 Net Proceeds
This CD only has interest at maturity. The box 1d (proceeds) contain the CD brokered value (xyz $). Since the CD was redeem so the box gain/lost = 0$. The CD interest was shown in 1099-INT. So, in this case, can I ignore 1099-B and form 8949? Thank you.
You are only required to report income on your tax return, so you do not have to report a Form 1099-B that doesn't have an amount in Box 1d (Sales Price).
If you fail to report the 1099-INT, the IRS will send you an automated Notice of Proposed Increase in Taxes later this year.
They will calculate the tax due (plus interest and penalties) and you can send them a check. No amended return is necessary, so you won't have to upgrade.
The IRS uses this simplified procedure since It is extremely common to omit reporting a Form 1099. You file before they arrive, they get lost in the mail, get lost in your house, are imbedded in your brokerage statement or get tossed along with junk mail.
If you are concerned about upgrading at some cost to you, leave it off
I don't think the IRS is going to come after you for a gain of zero.
They have better things to do.
One of my clients just received a notice from the IRS due to this situation. I will respond with the 1099B support reflecting a zero gain in order to resolve it, but my advice is to report it regardless, even without a gain, in order to avoid time and trouble resolving in the future.
While initial and follow up questions may be outdated, providing some input in case anyone else has this situation, which is not uncommon. [Comment removed].
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brokers do report CD activity on 1099B. to avoid issues because the IRS is trying to tie total proceeds and cost reported to it to total proceeds and cost reported on your return, you must enter or import $0 gain transactions.