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With a quick search of the web I found what might be some useful info for you, especially in the second link, a PLR that has relevant code sections, that would be a place for you to start for further research: some general information from SEC on how long the states hold securities, in general: https://www.sec.gov/fast-answers/answersescheathtm.html and this 2009 PLR where the IRS ruled that the taxpayer was allowed to defer gain or income recognition by purchasing replacement securities using the escheat funds (proceeds) received from the state. https://www.irs.gov/pub/irs-wd/0946006.pdf Hope this helps you some.

In the future, if your client donates a car worth it $4K, and then pays the mechanic $1k+, please don't pay the mechanic but rather make the check to the non profit and have the non profit pay the mechanic.

I thank all of you who responded. I determined not to deduct the $15,000 agreeing with most of what was said. I am certain he is not reporting it and of course no 1099-Misc will ever see the light of day. As it turned out the parent's huge deductible medical expenses eliminated any tax due and they are being refunded all taxes withheld.

See this IRS brochure (pub 4303) that answers the question of recordkeeping and what the statement must include, and has more information that you may find useful: https://www.irs.gov/pub/irs-tege/pub4303.pdf

Option #2

A client informed me that some of her stocks had been claimed by the State of Virginia due to a foul up on her part in the securities registration. I told her to immediately contact the relevant state agency and have it resolved asap. It never occurred to me she and her daughter would dilly dally over something like this. Two months ago I was told the matter was resolved after the mother was able to demonstrate ownership of the stocks. Unfortunately so much time had elapsed Virginia had sold the stock and instead of returning the stock sent the mother a check in the amount of $115,000 ! This is something I have never encountered. I am just wondering what kind of reporting form Virginia will send them. My suggestion to them was to ask for the brokerage statement from the state in order to determine capital gain just as if the mother had sold the stock herself. On the other hand Virginia may just send them a Form 1099-Misc which is not a great outcome. The daughter opined that since Virginia had sold the stock no tax was due. I have a sinking feeling that ain't going to cut it. Any comment will be appreciated. Since they received the funds this year this will be reported on their 2018 return.

Thanks, Judy! Been looking for more info everywhere. The brochure helps!

For my son's 21st birthday, we went to Las Vegas.... with a group of 5 cars, we drove as fast as we could go across the desert..., A Ferrari, Lambo, Audi A8 and Jag. Swweeeetttt!

Make sure you write "FIRST TIME ABATE" across the top of form 843.

You must be this tall to ride this coaster.

I have also had good luck with penalty abatement request. You have nothing to lose by trying for abatement.