Comments on: Do I Need Tax Atternoy – Irs Problem..same Question Again More In Detail?

By: Jss

Jss — Tue, 17 Nov 2009 14:41:15 +0000

Those 3 trades are the problem.
You bought, you sold. (proceeds #1)
You bought, you sold (proceeds #2)
You bought, you sold (proceeds #3)
The same money, 3 times can make $29,000 of assets look like $87,000. Since the schedule D for 2007 was missing, the IRS said fine, cost basis = $0. So your your gain of $1942 looks like gain of $87,000.
Get out your records. find the page showing the purchases and the purchase price. Fill out a schedule D and fax it into the AUR unit (the number in upper right hand corner of the CP2000 notice).
The $1942 of gain is probably only tax, penalties and interet of $600.

By: Jason H

Jason H — Tue, 17 Nov 2009 14:15:36 +0000

Wow, a free $87,000.
If they weren’t your sales, whose were they?
Someone may be trading in your name, I would contact the broker to see if the money is an “accident” or not. You might want a good CPA to go over the records, just to be sure it was you or not.
Tax resolution, the same. File an amended return. But straighten out with the broker first. If it is the broker’s mistake, you need a “corrected” 1099. If it is identity theft, you need to report that, too.
If everyone thinks it your money, take some out (better, take it all out and switch brokers) and pay your taxes.

By: Chuckie O

Chuckie O — Tue, 17 Nov 2009 13:42:20 +0000

Reply to the IRS letters before the due date. You may be required to amend you tax return; File form 1040X and report the share transactions.
IRS has computed your tax on $87,000 assuming 0 basis, no all $87,000 is profit.
You do not need a tax attorney. You need a tax professional who does such cases.
Read http://taxipay.blogspot.com/2008/04/list…