In 2011 Sanifi took over Genzyme. All shares of Genzyme were sold at that time. My client forgot he owned Genzyme and never got his $70k. In 2014 the $70k was turned over to the State Unclaimed Property Division. In 2015 they found my client and gave him the money. My client wants to pay the tax. My way of looking at this is he needs to file a 2011 amended return to pay the tax (since this is double what his original return showed as income the statute is still open (6 yr statute). Does everyone agree amending 2011 is the correct way to go?
-
-
Did he not get a 1099-B on it in 2011? It may be possible they simply exchanged the shares for ones in the new company. If the new company could not locate him, the account may have been turned over to the state. But until he claimed it, the shares may not have been sold. If, in fact, they were sold in 2011, then that's the return they go on, but I would have thought a letter from the IRS for non-reporting would have been received by him by now. I had one this year that was found by one of those firms who take 25% of the money for locating the account, and they liquidated it and sent him the check. So it was a sale in 2015. -
Answer to Burke
I thoroughly looked into this. The stock was sold in 2011. He had moved and never gave his address to Genzyme. Why he never got a CP2000 , well you know the IRS does not go after all missing 1099-B Forms. i have noticed more than a few that were omitted and never caught. This must have been one of them.Comment
-
The Real Answer
To my surprise, based on Lawrence K Mudd TC Summary Opinion 2004-1 he reports it in 2015.Comment
-
Maybe the reason he never got a cp notice is because he moved?Originally posted by Kram BergGold View Post
I think I would order a transcript for 2011 before i put it on 2015 and have him pay the taxes on the sale twice.
ChrisComment
Comment