@PJhiker wrote:
I was told by a tax person the local H&R Block I should not worry about reporting anything because in my situation he paid all the Capital Gains.
What you were told is true, of course (your brother did pay the capital gains tax, or at least he reported all of the gain on his 1040), but a 1041 was never filed, which is the primary issue here since the IRS may be looking for one based on matching the 1099-S to a tax ID number.
You can probably safely forget about this situation, at least unless and until your brother receives a letter from the IRS (which, again, may never arrive). If your brother does receive such a letter, then it is in all likelihood his problem.
