All Things Tax

All Things Tax

Like the title says, from the filing process and tax questions to tax policy and reform, you can search and share All Things Tax here. This is the place to find answers to all your general questions that don't fall under the other categories. And just a reminder: questions about software or online filing should be posted in DIY Products.

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Esteemed Pioneer
Posts: 11
Registered: ‎02-15-2017

Didnt file 1099-R

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I recieved my w2's and a 1099-B for stock i had sold from an ESOP. Assuming thats all i had coming to me I got my taxes filed. I got back home and had a 1099-R for the same stock in my mailbox. There were no taxes withheld and none of the info was really any different than the 1099-B except a distribution code. The lady that had done my taxes put it in as a "capital loss/gain" and i noticed last year the lady who did my taxes put in the stock i had sold that year as "pensions/anuitties" . My question is, am I going to get red flagged for this? The income was still reported just in a different box and im sure the IRS knows about my 1099's before i do. Im really hoping i dont get rejected and have to go through the ammendment process. Need the refund as soon as possible.
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Esteemed Neighbor
Posts: 193
Registered: ‎02-28-2016

Re: Didnt file 1099-R

There would be no reason that I can think of to receive a 1099-R for your ESOP transaction. You may want to ask the issuer why you get two completely unrelated forms for the same transaction. Form 1099-B would be expected for stock sales. Form 1099-R is for a retirement account distribution. Anyone under age 59 1/2 will (in most cases) pay an additional 10% penalty for a retirement distribution. Doesn't make sense to me.

Esteemed Pioneer
Posts: 11
Registered: ‎02-15-2017

Re: Didnt file 1099-R

Well I guess (not to my knowledge) they are calling it a retirement plan. Its stock the company gives you a share of for every so many dollars you make. The company has always reffered to it as "your stock" i dont know alot about the forms I should get, so when i get the email saying my 2017 tax documents are ready on my companys website and see my w2s and 1099-B i assumed that was all i was getting. The 1099b was reported on my taxes as a capital gain instead of a pension or annuity. Im wondering what my chances are of recieving a refund and filing an ammendment or is this going to get flagged immedietly and be the 16 week process before i can expect anything? Thanks
Esteemed Neighbor
Posts: 193
Registered: ‎02-28-2016

Re: Didnt file 1099-R

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I found this reply to a similar situation (not ESOP specific), but may help.

 

"Q: I have received both 1099 R and 1099 B forms but they are for the same transaction. Only one withdrawal took place.

 

A: This happens when a distribution is made from the retirement account in-kind, and then the shares are sold outside the retirement account. Except in the case where Net Unrealized Appreciation (NUA) is involved (shown with an amount in box 6 of the Form 1099-R), when a distribution is made in-kind from a retirement account, the cost basis of the shares is the Fair Market Value that was distributed (the amount shown in box 1 of the Form 1099-R) and the holding period for determining whether the sale is a long-term or a short-term capital gain begins on the date of the distribution. If the sale was on the same day as the in-kind distribution, there will be no gain or loss so the sale proceeds on the Form 1099-B will be the same as the cost basis and there will be no capital gain or loss on the sale; only the retirement-account distribution will be taxable."