an_ordinary_guy_158[at]hotmail.com (Bill) wrote:
- quote -

If you were born before 1936 you should use form 4972 to
compute the tax on that $72,000 Lump Sum Distribution. The
tax will be $6,534, or 9%, IF you just add it to your
income it will be taxed at your 15% ? bracket. The NUA (or
profit over the $72,000 )of the stock, when sold, is taxed
as Long Term Capital Gains. ed

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Eastman123 wrote:

- quote -

Yes, gladly.

A stock certificate is NOT a promissory note. It is
evidence of ownership in a corporation and the receipt of it
evidenced the fair market value that you you were paid.

Therefore, it is taxable.

Cheer$$,
Harlan Lunsford, EA n LA

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

eastman123[at]aol.com posted:

- quote -

Maybe it will help you understand, if you look at it this
way: Suppose you sold that stock certificate: how much
would it have been worth, in May 2003?

Even if you chose _not_ to sell, that value remained. And
*that* is why you had a taxable event.

Bill

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

I retired in May 2003 and received a 1099R for $72,000 for a
stock certificate issued from my ESOP. But I have NEVER
received any money. What I received basically was a
PROMISSARY NOTE. I have asked several people if I have to
pay taxes on something I DID NOT receive and all said yes.
Can this truly be accurate? Isn't there another form I can
file with this 1099R to show I never received any monies and
that I will pay when I do? My old company has refused to
change the distribution code. Can anyone help? PLEASE?

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->