With the IRS reporting requirements surrounding securities, brokers are generally required to report certain information to you about your stocks. However, when the stocks have been transferred to your current broker from a previous broker, the current broker can treat the stocks as non-covered securities. When this is the case, your current broker may not have the same reporting requirements (i.e. providing your basis amount).
If the stock information reported on Form 1099-B Proceeds From Broker and Barter Exchange Transactions is for stocks which did not originate with your current broker, Box 5 Check if nonrecovered security will be checked.
If you have received a Form 1099-B with Box 5 checked, do the following when entering the form into the TaxAct program:
Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.