It depends on why you were given the shares.
If you were given the shares as a personal gift, you would not report receiving the shares, but you would report the gain or loss on the shares when you sell them.
If you received them from your employer, this would be considered compensation.How the stock is taxed would depend on the type of award or grant involved. For instance, if the stock is "vested" at the time that you received it, then you are entitled to the full value of the stock at the time you received it. In that case, the value of the stock is taxable as income to you.
See this
link for a discussion of employee stock grants. Please respond with a comment if you need more information.
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