lol!
You've gotta be kidding! Of COURSE IRS is interested in the purchase price of the shares. If you've ever done an audit, you KNOW that is one of the items that IRS is most interested in. I mean, how else can they know the basis of the stock when it's sold?
So.....what's the big deal? Are you trying to scare someone? As long as the person has their ducks lined up in a row, and makes things as easy as possible for the auditor, things don't usually turn out too badly. Unless, of course, the person is hiding lots and lots of income....but then that's a different story. But any auditor worth their salt can smell out concealed income in a heartbeat...mainly because people get too greedy and just don't think of how their lifestyle can align with what they report on their taxes. Gotta think about things like that. Don't buy a fancy car unless you're willing to realize that you might have to be explaining where you got the money for it, if that money is not already reported on your tax return.
But I think I got off the subject. My point is....everyone seems to panic whenever IRS is mentioned....but the scenario that you raised is just not that big a deal. Nice try though.
