Merger and cash payments for stock options
We had a merger which was completed in August 2011. As a result the company’s options in their Stock Plans were cancelled, and those with options were given the right to receive, a cash amount equal to an “option consideration value” for each share. Cash payments for options that were unvested at the time of merger were to be paid on the same vesting schedule as the options would have. Included in these plans were Restricted Shares. Everyone entitled to the Restricted Shares had put an 83b election on file when they were granted in years 2008 and 2009. We have been responsible for making the cash payments for the Restricted Shares in accordance with the vesting schedule since January 2012, and have concerns as to how these payments should be reported in terms of tax forms for the 2012 tax year. We have been processing them through Accounts Payable since it was determined that this would not be W2 income but rather 1099-B, however I am not convinced that is the correct reporting form. Can you please provide some guidance on this issue, specifically, what form do these payments need to be reported on, if any?
There is one larger concept here (that ties into a couple of other issues) so we will start with the larger issue of constructive receipt of income just to make sure you have the reporting following payment concept down correctly (then we will get to the more complicated forms issue).
Purchasing Shares of Company Stock and 1099-B
My company is purchasing shares of the company's stock from one shareholder/retired employee. The shares will be cancelled after the purchase. Is this a reportable transaction for the company and if so, what form is used to report the purchase? I would assume that the correct form would be the Form 1099-B. However, are we required to report if the corporation does not repurchase shares on a regular basis? (I'm looking at the definition of a broker in the instructions to the form.)
Stock Sale of Subsidiary to Third Party: What are the Reporting Obligations?
We sold the stock of a subsidiary this year to an unrelated third party. What is our reporting obligation for forms 1099 and 1042 for 2010? Are we required to report from January 1 to the date of sale? It seems that because the EIN of the subsidiary will now belong to the new owner as a result of the stock sale (not an asset sale), that the new owner would be responsible for all 1099 and 1042 filings for the year. If we both file forms for the same company/EIN, won't it create a problem with the IRS? Is this correct or have I missed something?
Annuity, Distribution, and Reporting on Form 1099-R
IRS instructions indicate to report distributions greater than $10. If there is a distribution from a deferred annuity contract-still in the accumulation phase-and everything distributed is non taxable income (a return of cost basis/principle), would we need to report this distribution on form 1099R?
Should the amount withheld from inside shareholders in a disbursement . . .
Should the amount withheld from inside shareholders in a disbursement that was put into an Indemnity Account (with it's own EIN) be a 1099 B or a 1099 MISC? If it's B, I don't have any "# of shares exchanged" for box 5. If it's MISC is it "other income?"
First off, there a number of issues we will need to address. But no worry, we can also springboard those into the answers you need to file sucessfully.
Client A buys stock from client B in a private . . .
Client A buys stock from client B in a private transaction. Is there a 1099-B reporting responsibility? Client B is looking for a 1099-B for the sale. Does client A provide client B with a 1099-B?
If the sale is truly between two private parties...
How should we report the purchase of our company by . . .
How should we report the purchase of our company by another company?
If the company that was purchased...
is a publicly traded company, there is Form 1099-B reporting. (Or, it may be subject to Form 1099-CAP reporting. Check the Form 1099-CAP instructions for more details.) You will need detailed information from your legal and tax departments.
If we are redeeming common shares, where the shareholders are . . .
If we are redeeming common shares, where the shareholders are incorporated companies (or other exempt corporations), should we report this transaction?
As stated...
in the IRS Instructions for Form 1099-B, you are not required to file this form for "sales for exempt recipients, including corporations, charitable organizations, IRAs, the United States, a state, or a political subdivision."