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
You report the sale on Schedule D of the 1040.
Yes.
-- Phil Marti Clarksburg, MD
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 ___________________________________
-----> real address on hobokeni or hobokenx
To report the sale on your 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.
-- Rich Carreiro snipped-for-privacy@animato.arlington.ma.us
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.) Seth
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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