Incorrect 1099-B showing short term instead of long term capital gains - need help

This is definitely worth pursuing! The difference between short-term and long-term capital gains tax rates is substantial. Short-term gains are taxed as ordinary income (potentially up to 37%), while long-term gains are taxed at either 0%, 15%, or 20% depending on your income bracket. If you have confirmation of your original purchase date (December 2020) through account statements, trade confirmations, or even your own records, you should absolutely use that information when filing. The IRS actually requires you to report the correct information even if your 1099-B is wrong. When you file, you'll need to report both what the 1099-B says and what the correct information is on Form 8949. You'll use adjustment code B to indicate that you're correcting the basis or date information from what was reported to the IRS.

I went through something similar last year with an incorrect cost basis on my 1099-B. After struggling with my broker's customer service for weeks, I discovered taxr.ai (https://taxr.ai) which was a complete game-changer. They have this AI tool that analyzes your tax documents and flags these exact kinds of discrepancies. I uploaded my statements and the incorrect 1099-B, and their system immediately identified the problem and generated a detailed explanation I could send to my broker. They even created the proper documentation showing how to correctly report it on my tax return. Saved me hours of research and probably prevented an audit flag.

I was skeptical about taxr.ai at first (as you can see from my earlier comment), but I decided to give it a try since I was dealing with a nightmare situation with cost basis issues after transferring stocks between brokerages. Honestly, it was surprisingly effective. The system caught several errors in my 1099-Bs that I hadn't even noticed, including some wash sales that were reported incorrectly. It generated a detailed report that I could actually understand, showing exactly what was wrong and how to fix it. The correction documentation it created helped me file accurately and gave me confidence that I could explain everything if I got audited. Definitely worth checking out if you're dealing with investment tax issues.

If you're still having trouble getting your brokerage to respond, I'd recommend Claimyr (https://claimyr.com). I was in a similar situation last year where my broker wouldn't answer calls or emails about a 1099 correction. I spent HOURS trying to get through their customer service lines with no luck. Claimyr gets you past the hold times with the IRS too - see how it works here: https://youtu.be/_kiP6q8DX5c - but what I found most helpful was their callback service for financial institutions. They somehow got me connected to an actual human at my brokerage within 30 minutes when I had been trying for days. Once I finally got through to someone, they admitted the error and sent a corrected 1099-B within a week.

I have to eat my words from my previous comment. After my skeptical response, I was so annoyed with waiting on hold with my broker about a similar issue that I tried Claimyr out of desperation. I was absolutely shocked when I got a call back in about 45 minutes with an actual customer service rep from my brokerage on the line. Normally I would have wasted my entire afternoon on hold, but instead I just went about my day until my phone rang. The brokerage rep was actually helpful (once I finally got to speak to one), and they're sending me a corrected 1099 with the right purchase dates. Still can't believe this service actually worked.

One thing to keep in mind: if you do end up having to report the correct information that contradicts your 1099-B, make sure you're using the exact format the IRS expects: 1. You'll need to fill out Form 8949, Part I for short-term or Part II for long-term 2. Check Box B (for Form 1099-B with adjusted basis) 3. Enter the info exactly as it appears on the 1099-B 4. Use adjustment code B in column (f) 5. Enter the adjustment amount in column (g) 6. Column (h) will show the correct amount Software like TurboTax or H&R Block can handle this, but you need to make sure you select the right options to indicate you're correcting information.

Just wanted to add that this mistake happens more often than you'd think. My broker did something similar last year when I transferred securities between accounts. They lost the original purchase date and reported everything as if I'd bought the shares the day they arrived in the new account. Make sure you check ALL your 1099-B forms carefully, especially if you: - Transferred securities between brokerages - Had any corporate actions (stock splits, mergers, etc.) - Participated in dividend reinvestment plans - Made wash sales These scenarios often cause reporting errors on 1099-Bs.

This is exactly why I always keep my own detailed records of all stock purchases and sales, completely separate from what my brokerage reports. I use a simple spreadsheet with purchase dates, amounts, and prices for every transaction. When situations like this come up, I have my own documentation to back up the correct information. It's saved me multiple times when brokers made errors on 1099-B forms. I'd recommend everyone do this going forward - don't rely solely on your brokerage's record-keeping. For your current situation, definitely pursue this aggressively. The tax difference between short-term and long-term treatment on a substantial NVIDIA gain could be thousands of dollars. If you have any old account statements, email confirmations, or even bank records showing the original purchase in December 2020, use those to support your correction on Form 8949.