Securities Litigation

[Westin]

s About Taxes)/Securities Litigation Advertisement Expert: John Stancil, CPA - 1/15/2011 I recently received 3 checks for a securities litigation involving Sequenom Inc. I'm trying to figure out if these should be reported as taxable income. The checks were for shares held and sold as a long term loss in a brokerage, 401k and Roth IRA account. Thanks,

Jason

[Graham]

Jason,

Thanks for your question.

Yes, those are taxable amounts.  Most likely you will receive a 1099 for them. The portion relating to the 401(k) would not be taxed if you placed it into the account.  If you did not place the amounts that related to your 401(k) back into the account, there may be some additional issues with that, and you should consult a CPA or Enrolled Agent to sort it out for you.

Hope this helps.

John Stancil,CPA