Yesterday, I received a large tax bill from the IRS for what they say is unreported income. In 2021, I sold items from my father's estate on eBay. Multiple tax experts told me at the time that when I reported these sales on my return from the 1099-K forms, I needed to zero out the sales by equating the cost basis to the total of the sales (my dad also died in 2021, so that's why they said to equate the sales and cost basis). So, the sales were on my return, they just weren't listed as income because of the situation.
Now, however, the IRS has shifted that income to self-employment income, thus resulting in a hefty tax bill and lots of fines and interest.
What is the best way to proceed?
