-13-
by October 18, 2000, the distributions received from Mr. Kopty’s
IRA amounted to most, if not all, of the proceeds realized from
the sale of the J.D. Edwards & Co. stock and the income realized
on those proceeds.
Prior to filing petitioners’ return for 1998, Mr. Kopty had
sent a letter to the Internal Revenue Service dated May 27, 2000,
in which he explained why petitioners’ 1998 return had not been
filed. Petitioner’s letter, which was mailed on June 6, 2000,
states as follows:
Please be informed that the 1998 taxes are held up due
to an error made by my ex-employer J.D. Edwards in the
preparation of the Form 1099. Please take note of the
following:
1. The 1099 Form of J.D. Edwards indicates that
the gross distribution is US $467,817.48
attached.
2. J.D. Edwards claims that the calculation for the
above is based on 10,323 shares x $45.313 per
share.
3. According to the bank statement, Norwest
Investment Services the shares were $31.00 per
share when they were finally “free and clear” on
November 4, 1998. As a matter of fact, the shares
were sold by Norwest Investment Services on
November 16, 1998, for a total of $339,203 which
is an average per share of $32.85. This was put
in an IRA account.
4. I re-addressed this issue again with J.D. Edwards
and based on their last response they believe that
their calculation is correct. From what appears
to be the issue is that J.D. Edwards has made
their calculation at a much higher price per share
on July 15, 1998. On the other hand, the shares
Page: Previous 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: March 27, 2008