I owned shares of Johnson Controls Inc. before their “reverse merger” with Tyco last year. I still hold all of my shares of the new Johnson Controls company, now named Johnson Controls International plc, from after the merger. I received a 1099B showing proceeds of over $1,000.
What are the tax consequences of this “reverse merger”? Do I have to pay tax on the proceeds of $1,000 even though I never sold any of them and never received any of he proceeds in cash?
This was an "inversion" and the income tax treatment you describe is exactly in line with transactions of that sort.
It's "as if" you were paid in cash for the old stock and then immediately turned around and bought the new stock with the cash. If you still have the very thick document that explained the transaction to you look for a section titled "Material U.S. Federal Income Tax Consequences" or something similar and I'm sure that this methodology was explained there.