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Author: ptheland Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121482  
Subject: Re: Wells Fargo 1099 & Wash Sale Date: 5/17/2012 2:46 PM
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I am of the opinion that the 1099 was correct as issued. That doesn't mean it accurately accounts for all of the tax issued regarding that particular stock. It just means that Wells Fargo and First Clearing reported exactly what the IRS required them to report.

There's no reason to get upset or huffy with Wells on this one. And there's no reason to worry about the IRS asking questions. If they ask, you provide them the info from your records to back up the tax return.

Finally, there's a right way and a wrong way to report this particular sale. The right way would be to show it on the new Form 8949. This transaction should have been on an 8949 with box A checked. Columns c, d, e, and f should agree with the 1099. Then use columns b and g to adjust for the wash sale.

With that reporting, the IRS computers will match the 1099 and you shouldn't hear a thing from the matching program.

--Peter
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