During the year, you might have received a check from a company that you invested in and wondered why you received it, but cashed it anyway. Then, the company sends you a Form 1099-B at the end of the year, and you wonder why you received it because you don’t remember selling any stock. On the form, there might be a description such as "cash in lieu." This description indicates that you received cash in lieu of receiving a fractional share from the company.
There are different reporting rules depending on why you received the cash. For information about your situation, click the appropriate link:
You received cash in connection with a stock dividend.
You received cash in connection with a nontaxable exchange, such as a merger or corporate restructuring.
If you don’t know why you received the cash, click both links and read the information to figure out how to handle the sale.