Must I select "The cost basis is incorrect or missing on my 1099‑B" in TurboTax in the case of vested RSUs?

Question

I file my US taxes via TurboTax as a US lawful permanent resident. Some of my RSUs vested in 2021, which I partly sold in 2021. My employer uses E-Trade for RSUs. E-Trade reports on Form 1099-B that the cost basis for vested RSUs is 0 USD, which is untrue. I can go to https://us.etrade.com/etx/pxy/tax-center and click on Stock Plan Transactions Supplement to view the Adjusted Cost Basis.

In TurboTax, after reporting in Box 1e - Cost basis the Adjusted Cost Basis, must I check The cost basis is incorrect or missing on my 1099‑B?

Answer 1

Yes, because it is incorrect or missing on your 1099-B. This makes it easier for the IRS matching program to identify mistakes. Your return will not match the 1099-B they've received, so by checking this box you're essentially telling them that this is expected (and not that you mistyped something on your return).