I'm a stock trader.
Certain stocks are very volatile.
I'm buying a stock, it goes higher I sell some or all.
It goes lower. I buy it again. It goes higher I sell again.
Goes much lower again I buy again.
The way you protect yourself.
I might trade the same stock 10 times.
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Brokers should report wash sales to the IRS on Form 1099-B and provide a copy of the form to the investor, but they're only required to do so per account based on identical positions. This means that transactions can—and often do—fall through the cracks.