83(b) Election filed last year

[lighter1]

Past year I filed 83(b) Election, since then I didn't sell shares and didn't get any dividends. Do I have to report (to IRS with my tax return) anything this year regarding that or not ? Should I expect any document this year from the company gave me the shares?

[DianeW · Accepted solution]

No, there should be nothing to report if you don't have any transactions in 2016.  Once you're fully vested, the stock is all yours. If you sell any shares, you'll get a Form 1099B from the brokerage with the gain or loss information.

https://ttlc.intuit.com/replies/5373697

[lighter1]

Thank you so much. Let me provide most updated information:  I was recently informed that the company has closed and filed form 966 "Corporate Dissolution or Liquidation" - do I need to report anything to IRS because of that? So, in 2015 I was given stock which has been vesting over the period of 2 years which technically didn't end yet but the company has already been closed...
Should I expect anything sent to me by the company for a purposes of reporting with my taxes for the year 2016 because I was given those stocks?

[DianeW]

If the stock becomes worthless, you will have a loss to report.  The IRS requires the S corporation to file the final return by the 15th of the third month after dissolution. It would seem this will be in 2017 even though it is a short tax year.

[lighter1]

Thank you. In my case that is/was C corporation, would anything change in your previous replies because of that? Regarding the loss to report - should the company provide me some official forms/documents to reflect the fact of the loss or not and instead I could just somehow do that in TurboTax without having any forms from the company? Do I actually *have to* report the loss to IRS or not? In other words - will I experience any problems with IRS including but not excluding fines/fees if I don't report the loss?

[DianeW]

No issue with IRS.  You need to be able to show the stock is worthless before reporting, not necessarily from the company.

[lighter1]

I didn't receive anything from the company yet which I would use to report my loss, how to do that in TurboTax?
When you were saying "... You need to be able to show the stock is worthless before reporting ..." - did "reporting" mean "My Tax Return to IRS" ?
If I don't show on my Tax Return that the stock is worthless - will I violate anything related to IRS rules or not ?
Would it be correct to say that in case I don't report the loss then the only "problem" I would have is the fact that I will not be able to potentially deduct that loss from my return?

[DianeW]

Yes, you report the loss on the tax return in the year you know the stock is worthless which may not be until 2017.  It's reported just like a sale of stock with a zero sales price. Description of worthless.

[lighter1]

Am I really allowed to do so? I thought I am only allowed to report that kind of information to IRS if I have proper official forms from the broker/company who granted me shares. I also have not found any place in TurboTax where I can enter that information, could you please tell me where exactly I should enter it?

[DianeW]

@lighter <a rel="nofollow" target="_blank" href="https://www.irs.gov/publications/p17/ch14.html">https://www.irs.gov/publications/p17/ch14.html</a> (keyword worthless)