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@Tucsonpremium wrote:

This was reported on 1099-B, it shows sale of shares for $114,251 gain but she never received any money, the funds change from one company to another one

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Are you saying the money never got into her account?  If so, did she work with the broker to find out what happened?  If this is the case, I am sure the SEC would want to know about it.

If the money was deposited into her account, which is what should happen, she has constructive receipt of the money and that's taxable income to her.  Whether she moved the funds to another company is irrelevant.

@Tucsonpremium wrote:

Maybe is not tax exempt income, I assume it was by the name First Inv Tax Exempt Income Fund-A

Maybe?  It definitely is not.  Tax reporting goes by tax law, regulations, and various other guidelines, not by what something is called or assumptions.