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Subject:  foreign bank reports wrong cost basis Date:  5/9/2003  2:46 AM
Author:  crre Number:  65327 of 132711

hi all,

background: i live abroad, and participate in my employer's espp through my foreign bank. recently, banks in our country (israel) started reporting to the irs, so for the first time this year i received a 1099-div from this bank.

on the statement i recently received from my bank (not the 1099-div), the cost basis of the stock is way off - it is too low by a factor of 100. i've reported this, but they work very slowly - it could be months or years before they sort it out.

now to my question: if i sell stock (i have only ever bought), does the bank report the cost basis on some form to the irs? if so, then it seems that i shouldn't sell before i get the bank's records corrected - is this right? or is it ok to claim the correct basis on my returns if i know i am right (i have the documentation to prove it).

thanks in advance for your help,


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