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I left a job in 2019 where I was granted some RSUs that were to be vested first time in 2020. But I never received the RSUs since I left the company before the first vesting.

Today I received a 1099-B for those unvested shares as if they were acquired and sold on the same/next day and I have a capital gain acquired. Is this some error since I never received any stocks? Do I have to report the capital gain in my fed return and pay tax for it?

EDIT: Just got a call from the broker that it was a mistake on their end.

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  • Did you receive the money from the supposed sale?
    – user102008
    Mar 20, 2021 at 18:44
  • It reports it as sale (sold the very next day) but I never received the stocks or proceeds from the sale.
    – user1166419
    Mar 20, 2021 at 18:45

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If you never received the proceeds that are described on the 1099-B, then it definitely seems like you shouldn't have gotten the 1099-B.

I mean, if they gave you the proceeds for some weird reason, even though you left before the shares vested, then it would probably make sense to get the 1099-B. But in your case, you said you never received any proceeds, so it seems like it's a mistake.

You should contact the people who sent you the 1099-B (it could be a broker instead of your former employer), and tell them that you did not receive the proceeds, and should not have gotten the 1099-B. Try to get confirmation that they are no longer reporting it to the IRS.

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