I used turbotax to file my tax, but this is not turbotax fault. I am just trying to figure out if I could file any forms or do anything via turbotax or in any other way to avoid substantial tax understatement penalty.
I have just received CP2000 regarding tax I owe in 2021. I forgot to include a sale of stocks, which I used to pay for my first home, on my tax return. Because I closed this particular investment account right after the sale and moved to my new home, I didn't receive the tax forms for the stock sale and I forgot to include it on my tax return for 2021 (other stock sales from still open accounts which sent me the tax forms, I have included). Now I do not dispute the tax I owe or the interest, but I am trying to figure out how I can avoid paying the substantial tax understatement penalty (~$1,550). I called the IRS and explained this, the IRS said that it's not a reasonable condition.
I fully expect to pay the tax and interest, I am just trying to figure out how I could avoid paying the substantial tax understatement penalty, if it is possible. If not, I will try to pay the proposed amount as soon as possible.
Thanks,
