Can I amend my 2022 tax return

[jsss8791]

Recently got a letter from the IRS stating that I owed them more money and plus put up a penalty and interest on what I owed. I can see clearly that while I missed reporting a large ticket sale of stocks however, they missed the cost basis on that stock. This is the second time that the IRS is sending me a letter for a similar issue but I was able to rectify the first one pretty easily(similar to this one). Last time I just told them they had missed the cost basis but this time they did miss the cost basis but I still owe them a small amount of tax. Can I just amend my 2022 tax return and fix the issue?

[JotikaT2]

Follow the instructions on the IRS notice to reply.  In your reply, provide proof of the cost basis that was missed along with an explanation.  

If there is a phone number to call on the notice, you could also try calling the IRS and speaking to an agent to determine the best way to pay the tax still due.  This will ensure your IRS notice is addressed instead of having any additional interest or penalties assessed on the unanswered IRS notice.  Please see this link for additional guidance.

If the IRS agent suggests amending, then you can go ahead and amend 2022 using these instructions.  

[Opus 17]

The IRS does not have to give you credit for cost basis unless you claim it in writing.

You should prepare an amended return to calculate the correct tax.  However, don't file it normally.  Send the amended return, a check for what you owe (not including penalty and interest) and a letter of explanation, to the office that sent the notice.  If you reduce the amount you owe, the penalty and interest should be recalculated accordingly and they will send a revised bill for that.  

[jsss8791]

I see there two documents from two different brokerages that are missing. However, I had linked these accounts automatically to turbotax. How can I figure out why these docs weren't included in the tax calculations?

[Opus 17]

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@jsss8791 wrote:

I see there two documents from two different brokerages that are missing. However, I had linked these accounts automatically to turbotax. How can I figure out why these docs weren't included in the tax calculations?

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You would have to contact customer support and send them a copy of your file.  You always owe your own correct tax, but if the program is at fault in some way, the accuracy guarantee may cover the penalties.

https://ttlc.intuit.com/turbotax-support/en-us/help-article/account-management/turbotax-100-accurate...

[jsss8791]

Okay but is there any way for me to know via the turbotax website/UI interface as to whether I had entered the two brokerages? What were the inputs to the turbotax?

[fanfare]

It's called Import from Financial Institusion - 1099.

Otherwise you enter the data manually. This is so tedious you would surely remember doing it

@jsss8791 

[Opus 17]

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@jsss8791 wrote:

Okay but is there any way for me to know via the turbotax website/UI interface as to whether I had entered the two brokerages? What were the inputs to the turbotax?

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I don't know what you mean "you linked".  If you go to the investments section, and enter a broker name, user ID and password, the program will say something like "we found your documents" and then it will give you a list to confirm--1099-B, 1099-DIV and so on.   Then you should have a choice to "add another".  But you have to manually do that every year.  Just because you downloaded files from broker X in 2022 does not mean the program will automatically connect to broker X in 2023, you have to initiate that action yourself.   (Usually the program will create a series of blank forms for prior brokers, and you will be prompted to "update" or "revisit" these accounts to download the current year data.  If you don't initiate that, it won't happen and the forms will remain blank, although the program should continue to flag that as an issue for review.)

Once the data are downloaded from broker X, they should appear in your tax return.  

If you used Turbotax installed on your own Mac or PC, you can open your file and switch to Forms mode.  There should be a program worksheet for each broker you downloaded.  If you used Turbotax online, you can't see the internal worksheets online.  You can download your pdf for "all forms and worksheets", but it doesn't actually include all forms, just most forms, and the broker summaries might or might not be there.  You can also print your form 8489 to see if all your sales transactions are listed.  But you already know they are not, so it sounds like you might not actually have downloaded all the broker data.