Re:IRS will look into setting up a free e-filing system
by jjav on Saturday September 10, 2022 @04:48AM
(#32788981)
I should add to this, even though the broker reports the cost basis, be proactive in verifying that it is correct.
For reasons I can't comprehend, ETrade reports the costs basis wrong every single year on all my RSU and ESPP sold shares. They do issue a supplemental report which has all the correct info, but the 1099-B has it wrong. It is maddening. I need to send both the 1099 and the supplemental doc to my CPA so things are accounted correctly, otherwise I'd pay a lot more taxes due to ETrade errors.
All other brokers I deal with do it correctly.
Re:IRS will look into setting up a free e-filing system
by ryandrake on Wednesday September 07, 2022 @03:06PM
(#32755007)
Interesting. I learned something today. Thanks.
Re:IRS will look into setting up a free e-filing system
by seanp2k2 on Wednesday September 07, 2022 @03:33PM
(#32755514)
...and therefore there is even less reason for the IRS to not pre-fill forms or just have an exception-based filing system vs everyone has to file regardless of exceptions / amendments / challenges etc.
Your broker does know because you need to tell them which ones to sell when you sold.
The IRS also knows because that's included in the cost basis reported to them by the broker. (This changed some number of years ago, brokers used to only report the income from the sale but not the cost.)
https://www.spencerlawfirm.com/2011/01/new-cost-basis-report...