Looking at a couple of threads here, it seems that if etrade got the cost basis on the 1099 wrong and send that wrong information to the irs, we are allowed to ignore that cost basis and make adjustments in our tax return?
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They said they will have corrected cost basis in the supplemental report that comes with your 1099. By the way they always report RSUs at $0. I have adjusted that in my filing every time based on number in the supplemental report.
Yes. If you know the cost basis you make the adjustment yourself on the tax return. Just note that if ETrade send in the incorrect info to the IRS they could come back and ask you to quantify your cost basis calculation. However I think ETrade will get that all corrected before the end of the tax year.