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No. of Recommendations: 5
First, fire your HR Block person. They are not helping you by saying you don't need to report cost basis. If you report your cost as zero you are paying more tax than you need to. (Except in a couple of certain situations, and even then you will almost certainly overpay your state taxes if you're in a state with income taxes.)

It's up to you to keep track of your cost basis. Go back and find the record of when you purchased the stocks in question.

Non-covered securities are securities where the broker doesn't need to report the cost basis on your 1099B. Generally, they are stocks you purchased before 2011 and mutual funds you purchased before 2012. (I might be off a year there - I'm working from memory and not looking up the dates.)

Finally, take a look at the supplemental information that came with the 1099B. Sometimes the cost information will be there.

--Peter
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