Monday, February 13, 2012

Where is the check box on Form 1099-B?

Q.  I recently received my Fidelity 1099-B, but can't find the box that's checked to enter on Form 8949. What do I need to do now?

A.  I called Fidelity and spoke with one of their specialists. As luck would have it, the tax department people had already left for the day. As I understand it, Fidelity does not use a box, but lists by small code next to the Cost or Other Basis Provided, as to whether the cost basis has been reported to the IRS or not. For 2011, they are only reporting the cost basis of stock, if they have it. (Often stocks are transferred to a brokerage house and the basis is not provided.)

Currently, the only advice I can give is to check box "A" if the cost basis is provided, and on another Form 8949, you would list the stocks or mutual funds, etc. sold with the cost basis not provided. In this case you would check Box "B". If a 1099-B is not provided, you would then need yet another Form 8949 and would then check Box "C". If you are still in doubt, please call Fidelity at 800-544-4442 and speak to one of the customer service representatives.

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