If I receive a 1099-B on the sale of worthless stock, do I still need to report it?

[jason94536]

The 1099-B shows a sale of 0 on the worthless stock .  The worthless stock went worthless over 16 years ago so I'm not allowed a tax loss.  I also have no idea what the cost basis is.  However, do I still need to report the sale on form 8949 even though there is no income?  If so, how would I need to report it?

[MargaretL · Accepted solution]

Yes, you do need to report the 1099-B for matching purposes. You are correct, that you are not allowed to take the loss - per IRS rules, the lost must be claimed in the year it became worthless. And, since the loss was taken so long ago, you can no longer amend your tax return for the year the security became worthless. As to the basis, you can put zero as your value. First of all, you must enter zero if you cannot determine the value. Secondly, since the stock is worthless, your sales price is zero anyway, so this will have no impact. 

However, do report the form 1099-B, as the IRS has a copy of it and will be looking for it on your tax return. 

1. Federal Taxes
2. Wages and Income
3. Investment Income
4. Stocks, Mutual Funds, Bonds and Other - follow the prompts; your sale date is Dec 31 if no other date is listed on the form

[atawari]

How is this done using turbotax? I received 1099b with worthless stock which I already claimed 3years ago. 

Should I click blue button “I'll enter additional info on my own" and enter the "corrected cost basis" OR I simple change the cost basis at the very first screen (this basis was reported to IRS by the broker)? Please help!!