Government not notified of stock sale

[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

 

[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.

 

[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 <-----

 

[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.

 

[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

 

[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.