What do I do with Polaroid stock share I own?

You can hold it or sell it.

Polaroid Corporation went through Chapter 11 bankruptcy in 2001. The old shares have no value and are not publicly traded. If you have the physical stock certificate, you may be able to sell it to a collector or you could sell it to a friend for $1. Otherwise, you should contact your broker to see how to dispose of the share in your account.

If you know your original cost basis, you can claim the capital loss on your income tax, but you have to sell the share, somehow, to do that. Showing proof to the IRS that the share became worthless in 2001 doesn't do you any good, as you would have to take the loss in that tax year. That is no longer an option for you, as you only have seven years to file an amended return.

See links below.