I received a letter from IRS proposing changes to 2016 filing. The change is due to a conversion of investment funds into cash. Evidently there are covered and uncovered values which IRS is taking the entire conversion and recognizing as capital gain. The real capital gain is a fraction in which have the supporting documentation, but it does not box out the values appropriately. How do I handle? I am under time pressure as need to respond in next 4 days.
