1099-B The Toughest Tax Form

This is the form where brokers report to you and the IRS the sales of stock , bonds and other investments. Basis in your investments is also reported for most of the transactions now. Why is the form so tough? It comes late in the tax season, mid February and beyond,  and is subject to revision. It can be hundreds of pages long for those that are into buying and selling frequently. You have to watch for wash sales and other basis adjustments when reporting the sales. Sales have to be divided between short and long term and covered and noncovered. Covered means the basis was reported to the IRS. Compensation basis has to be added back to the stock basis in the case of employees selling their own company stock obtained with nonqualified stock options.