<p>Anyone know what this is?
The place where I have inherited stock funds says that won't get the 1099 forms out until the end of February.</p>
<p>I thought everything had to be out by end of Jan.</p>
<p>I want to get this done!</p>
<p>( An additional vent- the tax form for our Direct loan isn't ready either!)
:p</p>
<p>
The IRS now requires cost basis information be reported on 1099s, so that the IRS can make sure you are correctly reporting it after a sale. It applies to purchases made after a certain date, 1/1/2011 for stocks and 1/1/2012 for mutual funds.</p>
<p>Here’s a summary:</p>
<p>[Cost</a> Basis Accounting and Calculation - T. Rowe Price](<a href=“Cost Basis Accounting and Calculation | T. Rowe Price”>Cost Basis Accounting and Calculation | T. Rowe Price)</p>
<p>I have little faith the brokerages will get it right, particularly for fringe cases like inherited stock, where the basis is adjusted. We’ll see. :D</p>
<p>In theory 1099s are supposed to be out by Jan 31, but in practice there is little you can do about it if they aren’t. If you have your own records of the transactions you can just work from those.</p>
<p>If the stock is inherited the cost basis is what it was worth on the day of death or in some states you can choose to use the date 6 months after the death. You can look up historical price information on the web.</p>