Does Morgan Stanley report to the IRS? Because my return got rejected because my preparer said they don’t report it. Even though they sent the 1099 b

Forum|Forum|7 years ago
June 6, 2019
5 replies
47 views

I sold stock shares in 2018 with Morgan Stanley. I sold to cover and received a 1099 B. My tax preparer asked for that page but also the release confirmation to see all the tax withheld. I filed my taxes and my federal return was approved but my state return was rejected. I go back to my tax preparer and she said the IRS said Morgan Stanley does not report it to the IRS. So now I owe over 2k in money. If they don’t report it to the IRS why do they send the 1099 b form? I’m confused.

Best answer by jveustis

MSSB does report 1099Bs to the IRS. Some years, if you file too early, amended 1099s are issued. Are you sure your preparer said that MSSB doesn't report to IRS? Could it be that the preparer said that MSSB doesn't report to the State?

fanfare

Level 15

if your preparer got a REJECT, they should be working to correct that and resubmit your state tax return.

gramirez544Author

Level 2

She said about amending a return. I havent received anything from the IRS by mail.

jveustisAnswer

Level 2

gramirez544Author

Level 2

She first said IRS, but my state refund was the one that got rejected. Once that was said, she mentioned all this money I had to pay back because if the state is rejected it affects the federal I guess? I just don’t understand. Why would I pay back the federal when it was the state one rejected? I’m juat not sure if I call Morgan Stanley or the IRS so they can clarify the issue to me. She mentioned that Morgan Stanley is not obligated to report to the IRS.