I sold Class B shares to my ex-employer via a promissory note, repaid with interest. They issued a 1099-NEC for the full amount—should it be a 1099-INT instead?

[jm_la-ny]

I had purchased Class B Common Stocks while working at former employer. When I left, they repurchased that with a promissory note at the same value I had purchased + interest, that was paid this year, and I had the impression I would pay tax only on the interest, so I thought they should issue a 1099 INT. But they did actually a 1099 NEC with the total value of the note + interest. Is there a way to input a cost basis for that? Is this even correct or should they actually fix it with 1099 INT instead?

[ThomasM125]

It should not have been reported on a Form 1099-NEC, as that is for reporting non-wage income paid to individuals for services provided to a business. Since you sold stock, that should be reported on a Form 1099-B. Since you had a promissory note, the interest on that should be reported on a Form 1099-INT.