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View Full Version : Old Stock Plan - "Cash Disbursement" payment - how to treat in tax return?


srmcg
Dec 19, 2011, 06:31 PM
Hi.
I am a resident alien to the US in the last couple of years.
The company I worked for (a US company) in my home country had a stock plan to its employees as part of the employment.
I never really knew anything about this or did anything. I assumed it all closed down (and I lost whatever stocks were in it) when I left the company before coming to the US.
The stock account I guess is a US account.

A couple of months ago I found out that it was not closed - I inquired why that was and they said maybe there was some money in it owed to me.
I logged into the account and it showed about $30 as a "Cash Asset" or "Cash and Money Balances" in a statement.
I know absolutely nothing about stocks or what all this means. So I got the $30 paid out to me (went to my home country address) and then shut down the account.
I looked at past statements and that $30 was the only thing in it for many many years - and for years before I came to the US. Nothing else was added or given to me in the account. Only activity since I moved to the US was me getting rid of the $30 and closing the account last month.
This was processed as a "Cash Disbursement" - which I have no idea what this means.
This seems to me to be unrelated to any stocks etc as I did not have stocks for the past few years.

Can someone please advise what I need to do with regards this $30 transaction in my tax return next year - where it goes and how to handle it? The money never entered the US also - got sent to my parents house and told them to keep the measly amount it was. I don't know what terminologies it would represent and don't want to mistakenly get it entered as stock transactions or something that is wrong.

Sorry for the long question but I would really appreciate someone help as I have no idea what to do with this.

AtlantaTaxExpert
Dec 20, 2011, 07:49 AM
If there was stock in the plan, the $30 was $30 worth of stock, which was sold at your behest and the money sent to you (that was the "cash disbursement").

You need to report the transaction on Schedule D on your 2011 tax return. Have the company send you the specifics to what they sold the stock for and what you paid for it for an accurate report. If they do not know, name the stock and show proceeds of $30, and that will cover it.

srmcg
Dec 20, 2011, 08:24 AM
Thanks for the reply.
As I explained this has been the "value of the account" from whatever happened in it since 2007. Nothing has changed. There has been no stock shares in the account for last few years and only this $30 dollars "cash" owed to me sitting there.
So in 2011 there was no stocks in the account and the $30 was given to me from something in 2007 - stock was not sold for this $30 in 2011.

Do you really think I need to report it as stock sold in the 2011 tax return even though it's from a possible stock transaction from many years ago and related to when I lived outside the states?
Maybe it's more like I withdrew $30 from the account.
Does this info change your answer?

Thanks again

AtlantaTaxExpert
Dec 20, 2011, 08:52 AM
If the stock sale happened in 2007, then do not worry about it. The amount of money ($30) is so small that the IRS will not care about it, so it is NOT worth amending your 2007 tax return.

srmcg
Dec 20, 2011, 09:39 AM
Thanks.
I don't have a 2007 tax return as I moved to the US few years after.
So I am figuring now that I don't need to do anything with regards this and the $30 in this years tax return

AtlantaTaxExpert
Dec 20, 2011, 10:12 AM
That is correct; no action is required on your 2011 tax return.