Need a help with CP2000 notice

[confuseddd]

Hi,

I've received CP2000 notice for 2018 tax return that shows difference in a few areas, and I realized I didn't report 1099-B. I believe this 1099-B is related to RSU stocks that were sold to cover taxes at the time of vesting. Because W-2 includes all the amount of stocks vested as part of my income, I didn't think I had to report 1099-B in the tax return. Here are the differences that were reported in CP2000:

Differences
1. Securities: the amount shown in 1099-B
2. Taxable income, Form 1040, line 10: the amount from #1

3. Tax, Form 1040, line 11: Not sure where this diff came from

4. Net Investment income tax, Schedule 4, line 62b: Not sure where this diff came from

5. Total tax, Form 1040, line 15: #3 + #4

I understand that some of these differences were made by the fact that I didn't report 1099-B, but I don't quite understand where the differences in #3 and #4 came from. Because I used the employer's or employee's code from W-2 in Turbotax, I doubt something was entered incorrectly. Could it be just cascading effect of missing to report 1099-B?

Also, there are few more paragraphs that start with:

1. QUALIFIED/NON QUALFIED STOCK PLAN

2. Net Investment Income Tax

3. Form W-2 or 1099 not received

4. Misidentifies income

5. Cost basis of stock sold

I'm not sure what are the next steps. Could someone guide me to resolve this?

[macuser_22]

Of you sold securities and did not report the 1099-B on your tax return then all the shown changes are the result of the IRS adding the additional income.   You should look at it closely since instead of only taxing you on any gain (you would report the sales price and your purchase price (cost basis) to determine that gain, but the IRS can assume a zero basis and tax you on the entire sales price.

You can amend to show the correct additional tax and mail the amended return to the address on the CP2000 letter but call and talk to the IRS at the number that should be on the notice first to see if they want you to amend before you do that.