Completely confused about this year's 1099-B from E-Trade - GBTC reporting issues

The way brokerages report cryptocurrency and crypto-adjacent assets like GBTC on 1099-B forms has been changing a lot over the past few years. What you're experiencing isn't uncommon. When you see "basis not reported to IRS" on transactions, it means E-Trade doesn't have complete cost basis information to report to the IRS for those specific transactions. This often happens with crypto and crypto-adjacent assets because the reporting requirements have been evolving. It doesn't mean you can't report the basis - you absolutely should if you have your own records. For the transactions where the basis looks incorrect compared to your records, you have every right to use your actual documented cost basis instead of what's on the 1099-B. In TurboTax, you can manually adjust the cost basis for each transaction after it imports. Look for an edit or override option when reviewing the imported transactions. Keep in mind that for tax purposes, you need to report the actual cost basis (what you paid plus any commissions/fees) regardless of what E-Trade reported to the IRS. Just make sure you have documentation to back up your numbers in case of an audit.

I had almost the exact same issue with GBTC on my E-Trade 1099-B and spent hours trying to figure it out until I discovered taxr.ai (https://taxr.ai) which literally saved my sanity. Their system automatically detected the discrepancies in my cost basis reporting and explained exactly what was happening with my GBTC transactions. Turns out E-Trade had incomplete basis information because some of my GBTC was purchased before certain reporting requirements kicked in. The taxr.ai system analyzed my 1099-B and actually showed me which transactions needed manual correction based on my purchase history. It compared what E-Trade reported against standard crypto tax rules and highlighted exactly where I needed to make adjustments. Before finding this tool I was about to just accept the higher tax bill, but now I'm properly reporting everything with the right documentation to back it up!

Just wanted to follow up - I actually tried taxr.ai after reading about it here and it was seriously helpful with my crypto tax nightmare! I had GBTC plus a bunch of other crypto investments across multiple platforms that were showing all kinds of weird cost basis issues. Uploaded my documents and the system immediately flagged several transactions where the reported basis was completely wrong. For my E-Trade GBTC specifically, it showed that 4 transactions had incorrect basis values and 2 were missing basis entirely. The tool calculated what the correct basis should be based on actual acquisition prices. What really impressed me was how it explained exactly how to enter the correct information in TurboTax. Saved me hours of research and probably a lot of money too since I was definitely overpaying based on the incorrect 1099-B information!

Hey everyone, I had similar issues with my E-Trade 1099-B for GBTC and other investments. After getting nowhere with E-Trade customer service (literally on hold for 2+ hours), I tried using Claimyr (https://claimyr.com) to get connected with an actual IRS agent to ask about the reporting requirements. I was skeptical it would work since everyone knows how impossible it is to reach the IRS, but wow - Claimyr got me connected to a real IRS representative in about 20 minutes! You can see how it works in this demo: https://youtu.be/_kiP6q8DX5c The IRS agent confirmed exactly what others here have said - when the basis isn't reported to the IRS or is reported incorrectly, I need to use my own records and indicate on Form 8949 that I'm making corrections to what's on the 1099-B. Having that official confirmation from the IRS gave me the confidence to override those E-Trade numbers.

I need to eat crow here and admit I was completely wrong about Claimyr. After posting my skeptical comment, I decided to try it myself since I had a question about my 1099-B issues that only the IRS could answer. It actually worked exactly as described. The system called me back in about 35 minutes with an IRS agent already on the line. I was shocked. The agent confirmed I was right to be using my own documented cost basis for GBTC transactions where E-Trade's reporting was incomplete or incorrect. For anyone struggling with these 1099-B crypto reporting issues who needs official clarification, this is legitimately a time-saver. I would have never gotten through on my own - I've been trying for weeks. Totally worth it for the peace of mind of having the IRS directly confirm my approach was correct.

Just to add another data point - GBTC has been particularly problematic on 1099-Bs this year across multiple brokerages, not just E-Trade. I think it's because of how it converted from a trust to an ETF. My accountant said that brokerages are struggling with the reporting requirements for crypto in general, and assets like GBTC that changed structure are even more complicated. She recommended always keeping your own records of purchase dates and prices for crypto investments because the 1099 reporting is likely to be messy for at least a few more years until reporting standards fully mature.

has anyone else noticed that the wash sale rules are being applied weirdly to GBTC on their 1099-B? etrade is showing some of my transactions as wash sales even tho i havent bought any GBTC within 30 days of selling???

I'm dealing with similar GBTC reporting issues on my E-Trade 1099-B! What's really frustrating is that some of my transactions show completely different basis amounts than what I actually paid, and others are missing basis information entirely. I've been keeping detailed records in a spreadsheet since I started investing in crypto-related assets, so I know exactly what I paid for each purchase. But seeing these discrepancies on the official 1099-B form is making me second-guess everything. Has anyone had success contacting E-Trade directly about these reporting errors? I'm wondering if they can issue corrected forms or if I just need to override everything manually when filing. The last thing I want is to overpay on taxes because of their incomplete reporting, but I also don't want to do anything that might cause issues with the IRS later. Thanks for starting this thread - it's reassuring to know I'm not the only one dealing with this mess!

I'm going through the exact same headache with my E-Trade 1099-B and GBTC! It's such a relief to find this thread because I was starting to think I was doing something fundamentally wrong with my record-keeping. My situation sounds almost identical to yours - some transactions showing "basis not reported to IRS" and others with cost basis amounts that are completely different from what I actually paid. I've been tracking everything meticulously in Excel since I started buying GBTC two years ago, so I know my numbers are right. What's particularly confusing me is that some of my earlier GBTC purchases from 2023 are showing correct basis information, but my 2024 purchases are all messed up. I'm wondering if this has something to do with the trust-to-ETF conversion that happened or if E-Trade just changed how they handle crypto-adjacent reporting. Based on what everyone's saying here, it sounds like I should just override the imported numbers in TurboTax with my actual purchase records and not worry too much about the discrepancies. Has anyone who's done this already filed their return? I'm curious if there were any follow-up questions or issues from the IRS. Thanks for posting this - definitely going to check out some of the tools people mentioned to double-check my work!