1099-B question! HELP!!

Forum|Forum|1 year ago
October 21, 2024
3 replies
2 views

Help!! I apparently didn't file my 1099-b (crypto stuff) on my 2021 taxes. Got a letter from IRS stating I owe 19k (a couple months past due with interest etc.). On my 1099-B from Uphold (crypto) my proceeds (1d) were 66,573.72. My cost basis (1e) was 62,498.66.

I heard that if you don't file, the IRS will amend with the proceeds without any costs to obtain those proceeds taken out. My question is, what do i need to do and if I file an amended tax return (1040-x) will this help bring dowm my tax burden on that 19k letter they sent me?

xmasbaby0

Level 15

I RECEIVED A LETTER FROM THE IRS/STATE

TurboTax does not receive any information from the IRS or your state after your return was filed, so no one at TurboTax knows about a letter you received from the IRS or the state.

(what the letters from the IRS mean)

I GOT A LETTER FROM THE IRS

https://ttlc.intuit.com/questions/3605673-i-got-a-letter-or-notice-from-the-irs

I AM BEING AUDITED

If you purchased Audit Defense:

https://ttlc.intuit.com/questions/2924451-i-bought-max-or-audit-defense-and-now-i-m-being-audited

AUDIT SUPPORT

TurboTax has a special phone number for help with IRS/state tax letters, which will be easier than going through regular Customer Support. At the page below, click on the blue button that says "Get Help from TurboTax Support". Then it will ask you what tax year is your letter. Then it will ask you what the letter concerns. Then it will show you the phone number during posted business hours.

https://support.turbotax.intuit.com/irs-notice/audit-support/

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

VolvoGirl

Level 15

How to Amend

https://ttlc.intuit.com/community/amending/help/how-to-amend-change-or-correct-a-return-you-already-filed/00/25588

ketchmmAuthor

Level 2

so by amending this, it will update what my taxes owed will be? Will it also suspend any actions by the IRS as far as sending letters and/or progressing to a possible lien stage for non payment of their original amount they said i owed?

Opus 17

Level 15

@ketchmm wrote:

so by amending this, it will update what my taxes owed will be? Will it also suspend any actions by the IRS as far as sending letters and/or progressing to a possible lien stage for non payment of their original amount they said i owed?

The IRS is taxing the entire proceeds, because they don't have to give you credit for anything (such as basis) unless you put it in writing.

Generally, you should start by preparing an amended return to recalculate your tax and see if it is different than what the IRS proposes. If you disagree with the IRS assessment, you have to follow the steps in your notice. That usually means that you write a letter of explanation, and send the letter and your amended return (as proof of your calculations) to the office that sent the notice, instead of mailing the amended return to the usual address for that type of return.

But it depends on what the notice says. And don't delay, if the notice has a deadline and you miss it, you may be deemed to have waived your right to challenge the assessment.

Mike9241

Level 15

what does the notice say to do if you disagree. follow those instructions.

if it gives the option prepare a 1040 x with only the 8949's/schedule d. send it with the notice to the address indicated. include a signed and dated cover letter explaining the amended return now reports the omitted crypto proceeds and their tax basis. Ask that the IRS correct its records accordingly and send me a revised bill.

if you do mail it, use a tracking service so you know that the iRS got it

Mike9241