1099-B

Forum|Forum|2 years ago
May 28, 2023
1 reply
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Hello,

I have an interesting situation, where I had private company stock due to exercising my ISOs when I left the company. The company was then bought by another company and I got a payout based on the price agreed in the acquisition agreement. I also received a form 1099-B from the bank which handled the M&A sale, however, the proceeds reported on the form are significantly less than what I was actually paid.

I have all the records of the ISO exercise at the time I left the company and the amount I paid to exercise the options is slightly higher (i.e. ~$100) than what I got paid as part of the M&A deal.

If I file my tax return with the amount listed in box 1d (Proceeds) of the 1099-B I received, I will make a significant loss. However, as I said, that number seems incorrect, because the proceeds I got during the M&A transaction were quite a bit higher.

What should I do?

Mike9241

regardless of what the 1099 shows you are obligated to report the correct proceeds and cost. I would contact the bank to find out if they can offer an explanation for the differences. Then if they agree it misreported request a corrected 1099. if they won't issue one use code "o" per 8949 instructions to report the correct numbers. if there's a reason please post back so we can suggest how to handle this. if