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Financial Planning / Tax Strategies


Subject:  Question about restricted stock Date:  9/10/2012  2:59 PM
Author:  twopairfullhouse Number:  116577 of 129503

My wife has received restricted stock, and when they vested, some of the shares were withheld to pay tax (about 1/3 of the shares). However, since I never received a 1099, and have never sold any shares, I never put these on our tax returns. I'm now considering the sale of some shares, and I'm now realizing that I probably should have declared these awards upon vesting, and taken credit for the taxes paid. I think the taxes withheld are roughly what I would pay now, but that's probably beside the point. I'd rather not have the IRS get upset.

The problem is that the earliest award is from 2007. I have paid the taxes on the dividends received as ordinary income (as I received an end of year statement for the dividends). Do I have to go back 5 years and submit 5 years worth of revised tax returns? Any guidance would be most appreciated. Thanks.
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