Tax treatment of BIND/DNIB liquidation
There has been some activity on Twitter today in a conversation involving Geoffrey Berman, the court-appointed trustee of DNIB's liquidation. It appears that the major brokerages are ERRONEOUS in sending out 1099's which claim the payouts to shareholders are dividends, which they are NOT:
This will cause all sorts of problems for shareholders reporting the payments correctly, because the IRS will get those incorrect 1099s.
In case the link above isn't static, here are the links to the individual tweets:
https://twitter.com/KaiGriebenow/status/844699317218787329
I haven't figured out the tax consequences and various tax strategies regarding the liquidation of my DNIB shares yet, but this IRS link seems relevant:
https://www.irs.gov/irm/part4/irm_04-011-007.html#d0e190 The tax year in which the stock is worthless for tax purposes seems to be a critical issue.
-BC