Long Term gain / no 1099 or K-1 issued

[skdoorn12]

Client was part of (partner?) an LLC formed by group of investors. LLC never filed any returns with the IRS.

LLC purchased 1 share of local brewery / pub in 2002. Brewery bought out 1 share of the LLC in 2011.

My clients received 2 checks for $2600 (one for each spouse) along with a note from the lady "in charge" of the LLC. Note said that all us (per the accountant) should record our LT gains on Sch D as an investment in the Brewery as the LLC has never filed a return with the IRS.

No K-1 or 1099 issued. Any suggestions as to how to report? I did ask the clients for the date of investment as well as their cost basis and am waiting for that info.

[Lion]

Form 8949 Box C

If that's all they have to go on, then Form 8949 Box C long term is probably the best you can do.

Although, do I understand correctly that the brewery bought back it's share of brewery stock from the LLC? It sounded as if the brewery bought a share of the LLC, which would be a different thing to report depending on whether or not the LLC liquidated.

[skdoorn12]

thank for the reply. I did see that box on 8949 after posting.

[taxea]

1099s are to go out by 2/15 K-1's 3/15...don't be too quick to file until the TP has checked with whomever does the tax return to find out whether either will be going out. The K-1 is a return issue but the 1099 isn't. Whomever the accountant is should be issuing at least the 1099 if the company isn't filing it's returns.

[WhiteOleander]

1099s are to go out by 2/15 K-1's 3/15...don't be too quick to file until the TP has checked with whomever does the tax return to find out whether either will be going out. The K-1 is a return issue but the 1099 isn't. Whomever the accountant is should be issuing at least the 1099 if the company isn't filing it's returns.

There is no requirement that K-1s be issued by 3/15. If the LLC elected to be treated as a corp, the corp return would be due by 3/15. But, if the corp goes on extension, the K-1 would not be issued until 9/15. However, the OP states this is a partnership. Therefore, that return is due 4/15(17). But it may decide to go on extension. So, the K-1 would have until 9/15 to be sent.