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.
02-11-2018 07:20 PM - edited 02-11-2018 07:23 PM
02-12-2018 08:40 AM
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.
02-12-2018 12:54 PM
02-15-2018 05:31 PM - edited 02-15-2018 05:32 PM
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."