DC Corp. Law Question (URGENT)

I have two questions. The first is; I provided services for a company in exchange for pay and equity. The total value of the services was < $50,000. When the company was unable to pay me and I quit, I settled for approximately $10,000 and was allowed to keep my equity. This is where it becomes tricky. The stock a few hundred thousand shares, was then issued to my partners and I was issued about 40,000 shares. After which time, they began raising money at a 1.10 per share. They were unable to do this and rasied at about .50 per share. In any event, they placed a valuation on my stock of an arbitrary amount of 1.10 per share for several hundred thousand shares creating a huge phantom income. While most of the shares were not even issued to me. The most my services were ever valued was around $40,000.

Finally, I was issued a 1099 for the shares of several hundred thousand in income. Here we come to my second question. I have never been given a K-2 for shareholder distribution to reflect my basis of the $350,000 1099. Secondly, I have never recieved a K-2 or any tax information for the corporation. I have requested on four occasssions a financial accounting of the corporation and I am never given a response. INsiders say the owner states his corporate attorney says you must own 5 percent of the company to request a full accounting. But since they have not provided a K-2, or any other end of year statement, does D.C. law support this as their attorney says? Are there looholes fo rme to use that anyone knows? What are D. C. reporting laws and what rights do minority shareholders have?

The tax consequences of your situation depend on how the entire transaction was structured. Since it sounds like there was an overvaluation of the shares, you would be well advised to hire a tax attorney or CPS to represent you to them. You have thousands of tax dollars at state and you could be very sorry if this is not correctly handled.