Government not notified of stock sale


K

kkallmes

I sold shares in an S-corp, but the person who bought the
shares never notified the government so I never received a
1099. What should my next step be? Is it illegal and/or
unethical to leave this income ($6500) off of my tax return?

Thanks
 
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P

Phil Marti

I sold shares in an S-corp, but the person who bought the
shares never notified the government so I never received a
1099. What should my next step be?
You report the sale on Schedule D of the 1040.
Is it illegal and/or unethical to leave this income ($6500)
off of my tax return?
Yes.
 
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B

Benjamin Yazersky CPA

I sold shares in an S-corp, but the person who bought the
shares never notified the government so I never received a
1099. What should my next step be? Is it illegal and/or
unethical to leave this income ($6500) off of my tax return?
sale of S corp shares does not require a 1099 to be issued
you should check with your CPA & attorney to see if there
are any other filings required

___________________________________
<<< Benjamin Yazersky, CPA [NJ & NY] >>>
-----> real address on hobokeni or hobokenx <-----
 
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R

Rich Carreiro

I sold shares in an S-corp, but the person who bought the
shares never notified the government so I never received a
1099. What should my next step be?
To report the sale on your tax return.
Is it illegal and/or unethical to leave this income ($6500)
off of my tax return?
Yes to both.

The failure to receive a 1099 does *not* relieve you of
your obligation to report the income. It only makes it
harder for the IRS to catch you if you cheat.
 
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S

Seth Breidbart

I sold shares in an S-corp, but the person who bought the
shares never notified the government so I never received a
1099.
The government doesn't issue those. A buyer doesn't have to
either.
What should my next step be? Is it illegal and/or
unethical to leave this income ($6500) off of my tax return?
Your next step is to pay the appropriate tax (the shares are
probably capital gain). Not paying is illegal.

(Or do you mean that the S corp allocated you $6500 that it
should have allocated to him because he owned the shares?
In that case, you don't include it, and try to get the S
corp to correct the documents it sent you.)

Seth
 
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K

kkallmes

The government doesn't issue those. A buyer doesn't have to
either.
Your next step is to pay the appropriate tax (the shares are
probably capital gain). Not paying is illegal.

(Or do you mean that the S corp allocated you $6500 that it
should have allocated to him because he owned the shares?
In that case, you don't include it, and try to get the S
corp to correct the documents it sent you.)
Thanks very much to all who answered. I put the income on
Sch. D as recommended -- the shares went to an individual,
no to the company, but I was able to fill in all the
information in any case. I feel much better now.
 
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