Client has a 2020 1099-B for a 2019 stock sale

[rachelincolorado]

I've never seen this one before... a 2020 1099-B with gross proceeds and no cost basis, and a 2019 "date sold." I see on his 2019 return that the sale was reported (at a loss), and client doesn't recall any 2020 activity for the transaction.

So if the broker made an error on the 2019 1099-B, would they correct it with a 2020 1099-B? That seems wrong; but that's the only explanation I can come up with for why I've got this form in my 2020 documents.

Do I need to report it on the 2020 return?

If so, leave the date sold out or make up a 2020 date?  

[sjrcpa]

Was it an installment sale in 2019?

I've seen people get a 1099 in years after the original sale.

Or company was in bankruptcy and 2020 1099 is for a subsequent "recovery"

[BobKamman]

Just identifying the years doesn't help much.  What were the dates?  Maybe December 31, 2019 for what was reported on the return for that year, and January 3, 2020 for the 1099-B?

[itonewbie]

Did you check whether your client accounted for all the 2019 transactions correctly, especially if this 1099-B is for a 2019 short sale that's closed only in 2020?

[rachelincolorado]

Thanks for your reply.

When you've seen this before, did they get a 2020 1099-B with a sale date of 6/30/19? (obviously not those dates, but that type of scenario.)

By entering what is on the 1099-B, I generate an error saying that I cannot claim a 2019 stock sale in 2020.

I was able to learn that this was for a company that went private, and I did confirm that the transaction was fully settled in 2019. 

[rachelincolorado]

Thanks for your input.... the transaction was fully settled in June of 2019, reported on a 1099-B at the end of 2019.

And now a year later, an extra few hundred dollars were reported on a 2020 1099-B with the same June, 2019 stock sale date.

I was able to confirm with my client that the transaction was fully settled mid-year in 2019. I'm fine reporting it, but I cannot enter the 1099-B as delivered without generating an error that says I cannot report a 2019 stock sale on the 2020 return.

[rachelincolorado]

Thanks for your input. He believes it was fully reported in 2019... this is my first year doing his return, but I did check and confirm it was reported on his 2019 return.

He is following up to see why they issued this to him, so we'll see if my client can uncover a reason for the 1099.