I was employed by a company from February 2011 - September 2013. When my employment terminated in September of 2013, I purchased stock of the company for $1100

In 2018 the company was liquidated and the stocks I bought became worthless.

I never reported the loss to the IRS or any other government. But I want to get credit for it now. How can I do that? Given that we are only 48 hours away from 2022, I need to act quickly. Please tell me what forms I need to complete and how I can get them in in time.


You can request refund for up to 3 years after the initial tax return was due. For the year 2018 it was due in April 2019 - the 3-year period will pass in April.

Generally, after the three-year window closes, the IRS can neither send a refund for the specific tax year. nor apply any credits, including overpayments of estimated or withholding taxes, to other tax years that are underpaid.

Since the company was liquidated in 2018, you should have reported the loss on that year's tax return. The loss would have been categorized as long term capital loss and deducted from your other capital gains (long, and then short). If you had no or not enough gains to offset the loss, you'd be able to offset up to 3000 of your ordinary income for that year, and carry the rest forward to the next year (and so forth until you've used up the loss).

You should amend your 2018 return ASAP.

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