IRS proposed a change to my 2018 return bc TD sent them incorrect cost basis. TD corrected this and sent to me. What is the best way for me to reply to the IRS proposal?

[GTKJOS]

Im wondering aside from TD updated cost basis proof, what else should I include in response to reject IRS proposal to adjust.

[Critter-3]

If you originally included this corrected info on your tax return then respond telling them just what you said here and send the proof from TD to support your position that the IRS is incorrect.   A call to the number on the notice  may be able to resolve this situation. 

[Anonymous]

if you used the wrong cost basis supplied by TD you are not going to win. this could be due to no fault on TD's part.    many times a company will discover that it has no earnings and profits which makes any dividends it paid non-taxable (this should be reflected on the corrected 1099 TD sent you). these dividends reduce stock basis. 

sadly, brokers with clients holding this stock are not informed until after the filing deadline. (It happened to me. fortunately, the reduction was in qualified dividends and an increase in long-term capital gains - a wash)

TD should have also sent the corrected cost basis report to the IRS but how long it takes for them to update their records can't be answered.  however, if it was some other error that was solely TD's fault, you could ask them to pay your penalties and interest unless you filed correctly and it's the IRS that's messed up.