Well the closing company should have asked you if it was your personal residence AND if you had used it as a rental or as a home office ... some answer you gave the triggered the 1099-S issuance ... so compute the profit on the sale by using the amendment process in the home sale section and print the home sale worksheet, Sch D , form 8949 and form 4797 if needed. Then respond to the IRS notice as appropriate using the populated forms for supporting docs.
