How do I report a sale of stock of the private corporation?

[Need-2-Know-More]

For a sale of shares of a listed corporation, the stockbroker reports the transaction to the IRS and the seller by 1099B reporting. When a shareholder sells his shares in a private corporation to another shareholder or an outside person, what the corporation should report to the IRS, the buyer, and the seller? 

[sjrcpa · Accepted solution]

The coeporation reports nothing to the IRS, How would the corp know what Shareholder A sold his shares to Shareholder B for?

Seller is on the honor system to report the sal.e.

It is Buyer's responsibility to kep track of his basis in the stock.

[abctax55]

"...the stockbroker reports".  NOT the Corporation (think IBM, or AT&T).

This is because the stock is held in an investment account; stock in a private corp generally isn't. 

[abctax55]

Is this an "S" Corp?  If so, there are a few issues to deal with...  NMI.

[mjervis]

Greetings, I have a situation where I was granted shares in a private company and needed to buy in for those shares for which I have a cost basis.  This company was then sold to another private company and my shares vested and I received proceeds after about five years.  What form would I enter this transaction under.  There will be no 1099B type from coming from this transaction nor is it reflected in my wages.  I just received a check.  Thank you. 

[abctax55]

Hi there,

You’ve come to an Intuit site supporting tax professionals, and you may be looking for support as an individual taxpayer. Please visit the TurboTax Help site for support.

Cheers!