The IRS gets a record of what you sold the investment for, but not what you paid for them. If there is a significant amount that you sold it for you can expect to get an tax notice in six to nine months.
It will assess a tax based on what you sold the stock for. It will then ask for details on the stocks and you can show the purchase cost there.
OR, you can file an amended return.
To amend a return
Some quick ground rules:
- Be sure the original return was filed and accepted.
- DO NOT go back into the return or change anything before you start the amendment process.
- Gather everything you need before you start.
- Complete the entire amendment process before you log out.
- Starting with 2020 tax returns you can E-File a 1040-X amended tax return. All prior years must be printed and mailed.
You can correct a return that you've already filed and had accepted. Select the year that applies and use this guide to proceed.
Select your tax year for amending instructions:
For additional information please refer to How to Amend
The 1040X (Amended Return) tax form is scheduled to be available 03/25/2021.
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