I'm a tax advisor with a client who did independent consulting work and was granted stock back in 2016, but never claimed the value of the stock of $400,000 as income in 2016. He never received any tax forms, so did not know he had to.
The client sold all stock in 2018 for $200,000, so he had a $200k capital loss. On the 1099-B it shows a zero basis.
What would you do? Would you amend the 2016 return to show the stock income of $400k and carry that basis forward to 2018, or just report the whole 1099-B in 2018 as a capital gain with no basis? I'm thinking we need to amend 2016, but I'm curious if anyone would handle this differently.