Hello and thank you for using Just Answer, If the stock is even worth less than a penny per share, it is not worthless. You can't take a capital loss deduction on your income tax return for an investment that still has value, even if the remaining value is vastly lower than the original value. Even if you could claim it was worthless, you would still not be able to use more than $3000 a year (if you have no gains to deduct against). Depending on how much you are receiving from your IRA that may not help as much as you would like. If you do not wish to hold this low valued asset then you could sell. That way you have a specific date for showing the loss. You would still not be able to receive much help on the IRA distribution but under your first points you were not going to get that anyway.
You asked about how to abandon a stock or security:
(i) Abandonment of securities—(1) In general. For purposes of section 165 and this section, a security that becomes wholly worthless includes a security described in paragraph (a) of this section that is abandoned and otherwise satisfies the requirements for a deductible loss under section 165. If the abandoned security is a capital asset and is not described in section 165(g)(3) and paragraph (d) of this section (concerning worthless securities of certain affiliated corporations), the resulting loss is treated as a loss from the sale or exchange, on the last day of the taxable year, of a capital asset. See section 165(g)(1) and paragraph (c) of this section. To abandon a security, a taxpayer must permanently surrender and relinquish all rights in the security and receive no consideration in exchange for the security. For purposes of this section, all the facts and circumstances determine whether the transaction is properly characterized as an abandonment or other type of transaction, such as an actual sale or exchange, contribution to capital, dividend, or gift.
What that actually means is the stock is worthless and the taxpayer says that's it, I give up on ever thinking it will come back. So they give teh stock back to teh company that issued.
The stock has to be worthless to abandon it and the issuing company takes it back without the taxpayer expecting to get any compensation at all for it .