Form 1099-B Has Incorrect Proceeds

Forum|Forum|6 years ago
September 9, 2019
2 replies
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My Form 1099-B has the incorrect proceeds from a stock sale. Do I report the correct proceeds or request an amended Form 1099-B? Since the IRS will tie my Form 8949 back to the Form 1099-B, seems like I must report the incorrect proceeds listed on the Form 1099-B?

Thanks.

Anonymous_

Employee

@Oscar Zilch wrote:

My Form 1099-B has the incorrect proceeds from a stock sale. Do I report the correct proceeds or request an amended Form 1099-B? Since the IRS will tie my Form 8949 back to the Form 1099-B, seems like I must report the incorrect proceeds listed on the Form 1099-B?

If you wind up fighting the due date, then file the return with the proceeds shown currently but you should absolutely demand a corrected 1099-B if you are certain the proceeds shown are not correct - you can file an amended return thereafter if necessary.

chastity_lashure

Yes, I had a customer that had an incorrect proceeds 1099-B, actually the individual stated he had never had any involvement with the company in question. nor did he have stocks or bonds related to the 1099-B. I referred him to the Tax Advocacy Office with the IRS. ()https://www.irs.gov/taxpayer-advocate). This post was helpful. If you are ever in a situtation where you were sent a form, that was given to you by a business for tax purposes, that does not pertain to you. Sometimes the Tax Advocacy Office can assist with the situation.

TomYoung

Employee

Everything else being equal I'd expect the 1099-B proceeds amount to be correct. Is there any chance that the sale originated from some sort of "corporate action" - like a stock plus cash merger - where there can be some differences in how reporting is handled from one broker to the next? What stock was sold?

Oscar ZilchAuthor

Employee

It was actually a bond that matured. I know how to adjust basis with the error codes, etc., but there is no way to adjust for incorrect proceeds. I guess I should use these proceeds so everything will tie?

TomYoung

Employee

Boy, I just can't see how a brokerage firm could get a matured bond proceeds wrong. It's simply the face amount of the bond, right?

If you're really confident that you've got this all correct then one approach could be to leave the proceeds alone and use whatever basis figure you need to get your gain/loss properly stated. That does eliminate the possibility of the IRS's computers flagging the transaction as "proceeds don't match" and as long as you have your gain/loss properly stated the IRS can't really lay a finger on you.