The 1099-B from my broker includes long-term transactions with "date sold" less than 1 year after "date acquired". My inference is that this is because of holding period adjustments due to wash sales, computed by the broker. That is, I believe these are replacement shares (acquired around the time of a wash sale) where the original holding period is shown, but the transaction is assigned as long-term because the adjusted holding period (not listed and not easy for me to determine due to a large number of trades) is more than 1 year. (On the other hand, the basis shown on the 1099-B is the adjusted basis including the disallowed loss, not the original basis; this is the normal practice to my understanding.)
I need to report some of these long-term transactions individually on Form 8949, Part II, Box D, because they are themselves wash sales (as indicated on the 1099-B). The simplest thing is to enter them as they appear on the 1099-B, using the "W" adjustment, and using the purchase and sale dates listed (less than 1 year apart). Will this raise a flag because the holding period seems to contradict the definition of a long-term transaction? Or will the IRS be used to this, recognizing that wash sales are present (including also short-term wash sales) and so it is expected that some transactions are entered with original dates but placed in the long-term section due to holding period adjustments?
I am guessing that this is one acceptable approach, because it has been noted that the reporting of such holding periods is an open question among tax professionals:
The IRS should be required to clarify wash sale reporting rules... how exactly should the taxpayer account for the adjustment to holding period, by changing dates on their reporting or by some other method?