[SusieQ36]

My mother in law had Eaton Stock. It was bought out. She said that Cooper Tires bought them. Not exactly sure. Anyway, she received a 1099 for stock that she never received a dividend (it has always rolled over) and has not sold any. The explanation that she was given by an accountant was that the company that bought out Eaton is based in Ireland and for some reason she will have to pay almost $2000 because the buyer was from out of US. I have never heard of any such thing. She is on a fixed income and I would appreciate any information as to why they could do this.

Thank you

Sue

[AtlantaTaxExpert]

Does the Form 1099-B show the basis of the stock (what the stock was originally bought for, plus the dividend rollover) in addition to what the stock sold for?

If so, it is simple tax math, which I assume the accountant know how to do.

[ScottGem]

I would also assume the accountant knows the law and whether this is valid or not. If this does add to her tax bill, one possibility is selling the stock to pay the extra.