@harpermaddox - If you failed to enter the cost basis when the capital gain was reported then the IRS assumes it was zero and bills you for the entire amount of the sale, not just the gain. Answer the letter with documentation to show the actual gain or send an amended return if they requested that.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
