Forum Replies Created
September 16, 2021 at 4:11 pm in reply to: IRS received my tax filing but never cashed my check #71098
I finally got my activation code in the mail and logged in to see my returns.
When I looked up the 2020 returns, it says:
Your 2020 Tax Return Is Not Processed
The due date has passed. If you’ve already filed, processing usually takes 21 days (electronic returns) or six weeks (paper returns).If you still need to file, submit your tax return along with any payment due as soon as possible to minimize potential penalties and interest. If you’ve been affected by a recent disaster, learn about the most recent tax relief provisions
to know your options.
so it says six weeks for paper returns which mine was. I mailed it on May 15 and have return receipt for it.
I guess it is a delay everyone is experiencing? I hope they didn’t lose my return. My check is still not cashed.August 31, 2021 at 3:51 pm in reply to: IRS received my tax filing but never cashed my check #71013
I created an IRS account, but the last step requires an activation code which will be sent to me by mail that takes 10-15 business days. So I will wait for the activation code to come to log in and see if I can view the status of my tax return processing. Hopefully it’s just a delay caused by the backlog and not my return being lost or misappropriated. I wonder what happens if by the time they get to processing it the check I wrote is already expired? Doesn’t a check expire after 3 months?July 26, 2021 at 4:33 pm in reply to: IRS received my tax filing but never cashed my check #65686
By the way I did call IRS hotline to inquire multiple times since early July. Each time after pressing 1 for this and 2 for that…I got the greeting to be transferred and then “we are experiencing a high call volume please call back GOOD BYE”. I try once or twice each week to no avail.
Thank you, I will request a new 1099 and see if they can do it correctly this time.
One other question, if my original shares were exercised in say 2008, then the stock split in 2011 and 2015. Does it mean I have three lots of this stock each having different “purchase/open” dates or is the open date for everything the original exercise date? I understand the date doesn’t matter in this case due to the length of time they are all long term gains, but it would be nice to know which date to use for the splitted shares.
Thank you for the reply and explanations.
(1) Yes, the NQSO options I paid tax on the bargain element between the exercise price and the FMV at the time of the exercise. It was taxed as additional income which at the time threw me off totally because it kicked my income bracket to another level so I was taxed even higher. So now I have to pay capital gains taxes on the difference between the FMV at the time and the buy back price.
(2) I have to look further into whether I paid AMT when I exercised the ISO. I was incorrect in stating I didn’t pay taxes, I did, but not for exercising the option, but because at the time I exercised it cashlessly. So I gave up some shares to pay for it. Again because I did not do my homework correctly, at the time I was thinking I am exercising stock options I held for a long time, if there would be any taxes it would be long term gains. Oh boy was I wrong, the cashless exercise was equivalent to an instant short term capital gains, I exercised and sold shares the same day and used the cash to pay for the rest of the shares. Taxed as short term gains. Did I pay any AMT? I don’t think but I will double check.
(3) So I need to split the shares evenly. I was hoping to avoid that by calculating the basis on the initial lot of the shares and consider the split shares a basis of zero so that I can avoid having to keep track of how many shares of NQSO and ISO in each lot for the future. Looks like I can’t do that any more. Oh well.
Another question I have is, because it’s been a long time with these stock options, and my original company has been merged with another, then they too were acquired by another company…and then instead of paper certificates, they company hired COMPUTERSHARE and we sent in our paper certificates so they can manage them electronically and do the private market buy backs. They no longer have the cost basis information and didn’t include that with the 1099. They put 0 as the cost basis. This means I have to adjust the cost basis to reflect the actual numbers. Is that typical? Does that trigger an audit from the IRS?
In that case, I would have to do my calculations based on the “correct” basis and not the basis reported by the company on their 1099s. I wonder would that cause IRS to raise their eyebrows and trigger an audit.
The thing is after I sold some shares the company issued 1099 reflected cost basis of $0 on the shares I sold. Since it’s privately owned I was issued stock certificates and each certificate has a serial number. When I sold shares I picked a stock certificate that was issued during a split.