Income tax question about check from insurance (mutual fund) company?

I received a stock certificate from an insurance company about 5 years ago. The insurance was a type of ownership by the participants and the company was sold and the value was distributed to the holders of the policies in the form of stock in the purchasing company. I am assuming it was a form of mutual fund that was disbursed. I recently sold the stock and have no idea of how to determine the cost basis of the stock. The current company can only tell me the value of the stock on the day it was issued (I don't know the date) but not how much I invested previously. As hard as I have tried I cannot find any information on the previous company or have any idea as to what to do. I certainly don't want to pay taxes on the entire amont I sold the stock for but don't know how to determine a cost basis and don't want to get audited and not have answers as to how I determined exactly how much tax I owe.

What should I do, how can I determine the cost basis to file my taxes?

There should have been a K-1 filed on that in the year it happened and the basis of the stock should be in the K-1. Check with the CPA or Accounting firm who did the books for the company which was sold.......

good luck

What was your capital outlay 5 years ago? In other words, what was your economic impact 5 years ago. It sounds like you received this certificate at no cost to you. In that case you have no cost, and the monies you received at sale are all subject to tax.

However, if the distribution of the certificate is the result of a spin off or a merger, I highly suggest you go to a main library (rather than a local one), and
find the annual Standard & Poors booklets. Standard & Poors keeps track
of all stocks - it shows the dividends paid, the spin off, the stock dividend
distributions, etc for every stock traded on every USA stock market, and foreign ones as well.

Go to the 2000 or 2001 booklet and research the activity of the stock.

Then if you find additional information as to what really happened, provide us
with that information and we will be able to assist you further.