Legal Question in Business Law in Georgia

My husband was given stock as a bonus at his prior company twice. We paid taxes on this "bonus" (even though the stock is not worth that) and received K-1's and included that on our taxes as well. This year we had to call the accountant who prepares them for the company over and over to get the form as his prior company would not call him back. We just received the K-1 and it's basically blank except for company name and my husband's info. How can a K-1 not contain any figures? Seems there would have to be at least a little profit or loss.

Also, there was a letter that said this would be our last K-1 as our stock had "expired" or something like that. We were issued actual stock certificates at the time we received it. I know stock can be "worthless" if the company is loosing money or goes out of business, but can they just out of the blue tell you you no longer "own" the stock? And should we pursue the issue on the K-1?

Asked on 4/08/10, 11:06 pm

1 Answer from Attorneys

Glen Ashman Ashman Law Office also dba Glen Ashman Attorney

It sounds like you got stock warrants or options and not stock, and, if not exercised, those do expire. In any event, you need to get with the CPA who did your taxes in past years (yours and NOT the company's) to see if you correctly reported things then, and what you need to do now. This isn't a do it yourself matter and isn't really a legal issue. See a real CPA (and not something like H&R Block) for what may be a complex tax issue.

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Answered on 4/14/10, 12:10 am

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