Question $5$ of $15.$

When preparing a return for a taxpayer, what is an appropriate course of action if the taxpayer's basis for shares of stock is reported as $$0$ on a Form $1099\mathrm{.}8$ or substitute statement?

Ask the taxpayer for clarification, and conduct further research as needed.

Report the entire amount of the sales proceeds as a capital gain directly on Schedule D$.$ No additional research is required.

Refuse to prepare the return until the taxpayer obtains a corrected Form $1099-$B or substitute statement.

research is required.

Report the basis as $$0$ on the Form $8949$ and$/$or Schedule D to avoid a mismatch between the tax return and the income information reported to the IRS. No additional

$$ Mark for follow up