Does an RSU vesting event with shares that were sold at vesting always generate a 1099-B document?
Does an RSU vesting event with shares that were sold at vesting always generate a 1099-B document?
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jxramos · External communityPost link
External question — Personal Finance Stack Exchange
Author: jxramos
Original post: https://money.stackexchange.com/questions/164736
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I'm facing a dilemma with the IRS on account of some RSUs that vested back in 2022. Apparently my broker didn't communicate the cost basis to the IRS and with a fraction of the shares being sold to cover the ordinary income tax the IRS sees those sold shares in a 1099-B as having a cost basis of 0 and that the sold shares are to be counted as taxable income.
Did some law change between 2019 and 2022 that altered the way RSU income is reported to the IRS? I received RSUs from another company back in 2018 and 2019 and the broker at the time (eTrade) issued a
1099+ Consolidated 2019 Forms and details
. That document enumerated in its table of contents the following...
TABLE OF CONTENTS
Consolidated 1099 Sections:
1099-DIV / INT Summary Information
Details:
1099-DIV Dividend & Distribution Details
Your Account did not receive the following Forms:
1099-INT
1099-B <------------- not generated at the time
1099-OID
1099-MISC
So I'm curious why one employer did not produce a 1099-B several years ago while my new employer did produce a 1099-B. Is it the case that every RSU vesting event with any number of shares that get sold must now generate a 1099-B by the brokerage?
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littleadv · External communityPost link
External answer — Personal Finance Stack Exchange
Author: littleadv
Original post: https://money.stackexchange.com/a/164738
License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/
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Is it the case that every RSU vesting event with any number of shares that get sold must now generate a 1099-B by the brokerage
Yes.
I don't know why one employer in 2018 didn't produce that for you, seems weird. It may be that they did, but it is separate from your own individual brokerage account (which is what the consolidated statement is for). You might need to switch accounts in the UI to find it. I know ETrade specifically used to issue separate 1099 forms for each different account, so if you have a personal brokerage with them and the RSU account - they would have issued separate 1099 forms for each.
As to why the basis reported to the IRS is $0 - see
this answer
.
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Quoted from Forex.com.bd-Editorial External question — Personal Finance Stack Exchange Author: jxramos Source score (net votes, not local likes): 3 Original post: https://money.stackexchange.com/questions/164736 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. I'm facing a dilemma with the IRS on account of some RSUs that vested back in 2022. Apparently my broker didn't communicate the cost basis to the IRS and with a fraction of the shares being sold to cover the ordinary income tax the IRS sees those sold shares in a 1099-B as having a cost basis of 0 and that the sold shares are to be counted as taxable income. Did some law change between 2019 and 2022 that altered the way RSU income is reported to the IRS? I received RSUs from another company back in 2018 and 2019 and the broker at the time (eTrade) issued a 1099+ Consolidated 2019 Forms and details . That document enumerated in its table of contents the following... TABLE OF CONTENTS Consolidated 1099 Sections: 1099-DIV / INT Summary Information Details: 1099-DIV Dividend & Distribution Details Your Account did not receive the following Forms: 1099-INT 1099-B <------------- not generated at the time 1099-OID 1099-MISC So I'm curious why one employer did not produce a 1099-B several years ago while my new employer did produce a 1099-B. Is it the case that every RSU vesting event with any number of shares that get sold must now generate a 1099-B by the brokerage?
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